Deposits to account of Binance KR, a cryptocurrency invested by Binance, were restricted by measures of Woori Bank. And it caused legal disputes.
Woori Bank announced that it would suspend financial transactions of Woori Bank account used by Binance KR as ‘a business account for bill collecting’ as of April 20. BXB, an operator of Binance, applied for provisional disposition to ban the suspension of deposits. Then, Woori Bank completely suspended the deposits from the morning of the 14th.
The legal battle was triggered when BXB used a business account issued by Woori Bank in March of last year for deposit and withdrawal of BKRW, a stablecoin of Binance KR, launched in early April. Woori Bank told Coindesk Korea on the 7th, “We had no idea that our business account was used to deposit and withdraw cryptocurrencies.”
At the provisional disposition proceedings against the suspension of deposits held at the Seoul Central District Court on 14th, the attorney of Woori Bank said, “A creditor (BXB) visited Woori Bank in early March of last year and signed the article ‘This is not a virtual asset (cryptocurrency) exchange’ at the time of filing application.” “If the creditor deals with virtual assets, it has to consult with the debtor, but it didn’t, so Woori Bank suspended the deposits,” he added.
Jeong Ho-seok, an attorney of Binance KR (SEUM, a law firm) said, “In March last year when Binance KR opened an account, it did not deal with virtual assets (cryptocurrency).” “Late March of this year, Binance KR had asked Woori Bank to discuss the handling of virtual assets,” he added. He also said, “When we applied for provisional disposition on the 10th, Woori Bank suspended deposits from this morning. This is unfair.” “We hope the justice department will give results before the suspension of withdrawal from Woori Bank scheduled on the 20th,” he added.
The justice department will decide whether to grant provisional disposition this week.
“The bank is encouraged to provide reasonable grounds and data for actions based on the guidelines of Financial Services Commission (FSC). Also, the bank is expected to submit by April 15 for evidence that the creditor has handled virtual assets since the time it opened its account, evidence of high risk of money laundering of the creditor, and the reason for the ban on deposits this morning.” – Civil Chamber 50 of Seoul Central District Court
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