<ul> 
 <li>Delio was fined $1.34 million and had its operations suspended for three months by the FIU.</li> 
 <li>The company said that the assets confiscated by authorities might threaten its operations.</li> 
</ul> 
After being investigated and hit with a large fine, South Korean crypto lender <a href="https://thenewscrypto.com/defi-news-south-korean-regulator-investigating-crypto-lending-firm-delio/" target="_blank" rel="noreferrer noopener">Delio</a> is reportedly getting ready to file an administrative lawsuit against authorities over its misinterpretation of the law. 
The local media said that Delio stated the Financial Service Committee’s (<a href="https://thenewscrypto.com/south-koreas-fsc-mandates-financial-disclosures-for-crypto-firms/" target="_blank" rel="noreferrer noopener">FSC</a>) claims of fraud and theft are unfounded. When there were no explicit rules for virtual asset deposit and management products, the crypto lender argued the regulator was acting arbitrarily by implying them. 
Moreover, according to the report, Delio CEO Jeong Sang-ho was recommended for removal by the Financial Intelligence Unit (<a href="https://uk.practicallaw.thomsonreuters.com/4-544-0407?transitionType=Default&amp;contextData=(sc.Default)" target="_blank" rel="noreferrer noopener nofollow">FIU</a>) through a sanctions statement made on September 1. According to Delio, this was proof that the financial authorities wanted them to shut down the company rather than give it an opportunity to recover. Delio was fined $1.34 million and had its operations suspended for three months by the FIU. 
<h3 class="wp-block-heading" id="h-lack-of-legislation">Lack of Legislation</h3> 
The company also said that the assets confiscated by authorities might threaten its operations. FIU penalties, according to Sang-ho, might be fatal to the local virtual asset sector because of the possibility for irrational legal interpretation and arbitrary application they provide to financial authorities. 
According to Delio’s analysis, it is not obvious from existing legislation whether virtual asset deposits and management products qualify as financial products. Also, the company’s attorney lamented the lack of legislation or guidelines pertaining to the administration of virtual assets. 
The attorney claimed that the FIU wrongly construed the legislation by approving virtual asset deposits and management products as financial investment products. 
Highlighted Crypto News Today: 
<a href="https://thenewscrypto.com/swift-takes-strides-in-cbdc-interoperability/" target="_blank" rel="noreferrer noopener">Swift Takes Strides in CBDC Interoperability</a>

Crypto Lender Delio Reportedly Plans Lawsuit Against Authorities

Table of Contents

TheNewsCrypto

Other articles published on Sep 14, 2023

Bitcoin ($BTC) Price Could Hit $100,000 After Halving; VP Predicts

Cardano Price Prediction: Will ADA Make-or-Break In This Pattern?

Bitcoin price should be 2x higher according to stock-to-flow model

Polygon Releases 3 Major Proposals for POL Token

Thailand’s Second-Largest Bank Launches $100M Fund for Web3, AI and Deep Tech Startups

Bitcoin, Ethereum, and Solana Ascend Post-U.S. CPI Data Reveal

Join our free newsletter for daily crypto updates!