Lee & Ko successfully represented Coinone in obtaining a court order staying the execution of a three-month partial business suspension imposed by the Commissioner of the Korea Financial Intelligence Unit (“KoFIU”).

On April 15, 2026, KoFIU imposed a three-month partial business suspension on Coinone, effective from April 29 through July 28, 2026, pursuant to Article 7(5)(3) of the Act on Reporting and Using Specified Financial Transaction Information, among other provisions, on the ground that Coinone had engaged in virtual asset transfer transactions with unregistered virtual asset service providers. The suspension prohibited Coinone from providing virtual asset transfer services (deposits and withdrawals) to newly registered customers. In response, Coinone filed an administrative action seeking the revocation of the disposition and concurrently applied for a stay of execution.

The key legal issues in this case were: (i) whether there was an urgent need to prevent irreparable harm; and (ii) whether Coinone’s claims on the merits were clearly without merit. In addition, (iii) the matter was exceptionally time-sensitive, as the application was submitted merely two days before the partial business suspension was scheduled to take effect.

Regarding issue (i), Lee & Ko emphasized that if the suspension were to take effect, Coinone would be precluded from acquiring new customers, resulting in an irrecoverable loss of competitive standing. Lee & Ko further argued that if the application were to be denied, the three-month suspension period would have already expired during the pendency of the merits proceedings, rendering any subsequent favorable judgment ineffective in remedying the resulting damages. Regarding issue (ii), Lee & Ko actively argued that Coinone had fully implemented all feasible measures available at the relevant time, thereby precluding any finding of “intent or gross negligence.” Furthermore, regarding point (iii), in light of the imminent effective date, Lee & Ko urgently moved the court to issue a provisional stay, successfully securing an interim stay order within a single day.

Following a thorough review, the court held that difficulties in acquiring new customers, the loss of market participation opportunities, and the impairment of business reputation constitute harm difficult to remedy through monetary compensation, thereby establishing an urgent need for a stay. The court also determined that Coinone’s arguments—including the absence of substantive grounds for the disposition—warranted full adjudication through the merits proceedings and could not be deemed clearly without merit. Accordingly, the court ordered that the effect of the disposition be stayed until 30 days after the date on which judgment is rendered in the merits action.

This case is significant in that Lee & Ko responded swiftly to an administrative disposition carrying severe operational restrictions immediately prior to its effective date, successfully obtaining a stay of execution. The decision provided meaningful and practical protection to Coinone’s ongoing operations pending a judicial determination on the lawfulness of the disposition, effectively precluding irreparable harm.

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