South Korean Bitcoin lender, Delio, is planning to file a lawsuit against local financial regulators, citing a poor and incorrect interpretation of the law. This comes after the company was fined and faced sanctions for alleged failures in assessing money laundering risks. Delio’s CEO believes that the regulators are pressuring the company to shut down rather than providing an opportunity to correct their practices. Legal experts in South Korea have raised concerns about the classification of virtual asset-related deposit management products as financial products. The FIU’s accusation that Delio violated its obligation to prohibit transactions with undeclared virtual asset business operators is also being scrutinized. This lawsuit highlights the ongoing regulatory issues faced by the cryptocurrency industry in South Korea.

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