South Korea’s prominent cryptocurrency exchange, Coinone, is facing significant regulatory action. The nation’s anti-money laundering agency announced Monday its decision to impose a substantial fine of 5.2 billion won (approximately $3.49 million) and a three-month partial business suspension on the digital asset trading platform. These penalties stem from critical failures in fulfilling customer identity verification obligations and engaging in transactions with unregistered partners.
The Financial Intelligence Unit (FIU), operating under the purview of the Financial Services Commission, disclosed that Coinone failed to comply with its mandatory obligations to verify the identities of users in an estimated 70,000 separate instances. This represents a serious breach of anti-money laundering (AML) protocols designed to maintain financial integrity within the crypto market.
Further investigations revealed that the South Korean crypto exchange was also found to have facilitated approximately 10,000 transactions involving 16 international exchanges that were not officially registered. Such dealings with unapproved platforms raise significant compliance concerns and potential risks for investors.
During the three-month period of business suspension, new customers will be unable to deposit or withdraw funds for the purpose of cryptocurrency trading on the Coinone platform. This measure aims to reinforce the importance of regulatory adherence within the dynamic digital asset space.
In addition to the corporate sanctions, the FIU confirmed that Coinone’s chief executive officer will receive an official reprimand. The regulatory body has granted Coinone a 10-day period to submit its official opinion or response before the announced fine is formally finalized, allowing the exchange an opportunity to address the findings and proposed penalties.
