April 18, 2021

A South Korean court ruled in favor of a crypto exchange that lost …

South Korean court ruled in favor of unbanked crypto exchange

On October 30, the Seoul Central District Court ruled in favor of local cryptocurrency exchange Coinis, which was involved in litigation with commercial bank Nonghyup. Writes about it 8btc.

In September, Nonghyup unilaterally severed relations with the exchange, which made it no longer able to use its services for deposit / withdrawal of funds. In response, the exchange went to court, asking to restore the contract with the bank. The court, in turn, declared Nonghyup’s decision illegal.

Coinis lawyer Kim Tae-Rim stressed that the court’s decision in this case demonstrates that banks cannot unilaterally sever relations with a business, even if it works in the cryptocurrency field. “Cryptocurrency exchanges by default have the right to freely deposit and withdraw funds to and from all major South Korean banks. The sudden termination of cooperation and services by the bank without sufficient evidence is considered a violation of the terms of the contract, “he said..

A South Korean court ruled in favor of the unbanked crypto exchange on October 30 ...

The case between Coinis and Nonghyup was the first of its kind in South Korean jurisprudence. Kim believes that the court’s decision will become a precedent and force banks to be more prudent in the issue of terminating contracts with cryptocurrency exchanges without legal grounds or substantial evidence..

A South Korean court ruled in favor of a unbanked crypto exchange on October 30 ...

Earlier, Nonghyup also refused to cooperate with a large local exchange Bithumb, but in this case his decision may be justified by doubts related to the two hacks of the site. In August, Nonghyup agreed to reopen Bithumb service, allowing the exchange to register new users again..

A South Korean court ruled in favor of a unbanked crypto exchange on October 30 ...

Bithumb recently removed all options for fiat transactions, except for the service provided by Nonghyup. Meanwhile, Upbit and Gopax continue to work with all local banks..

A South Korean court ruled in favor of the unbanked crypto exchange on October 30 ...

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