South Korean Cryptocurrency Exchange Won A Court Case Against A Major Bank

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A South Korean district court has ruled against a major bank in favour of a cryptocurrency exchange, local media reported.

After the deposits to its account were blocked by the Nonghyup Bank, the Coinis exchange filed a complaint in an attempt to stop the bank from suspending its transactions.

The bank quoted the Virtual Currency Anti-Money Laundering (AML) guidelines as a reason for its actions. The court moved to dismiss the suspension, ruling that it isn’t legal for the bank to block the transactions based only on the AML guidelines.

According to one of the lawyers connected to the case, Kim Tae-lim, the Nonghyup Bank was in a breach of its contract with Coinis. He also expressed, that:

“This case is significant in that it is a decision to point out that indiscriminate regulation against a virtual currency exchange should be avoided in the absence of legal grounds.”

This is the first time that a cryptocurrency exchange has taken a legal action against a bank suspension measures.

It is an interesting ruling, as it may pave a way for more similar cases in other countries.

 

Images courtesy of Shutterstock.com

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