South Korea Fines Coinone 5.2 Billion Won for AML Violations

South Korea's Financial Intelligence Unit imposed a 5.2 billion won, or about 3.5 million U.S. dollar, fine on cryptocurrency exchange Coinone and ordered a three-month partial suspension of its services on April 13, following inspections that uncovered widespread antimoney laundering violations.

The sanctions stem from an onsite review conducted earlier in the year, which identified roughly 70,000 instances of inadequate customer verification. Officials found approximately 40,000 cases where identity documents were incomplete or unverifiable, and 30,000 more where unverified users were not restricted from trading. Coinone also processed about 10,113 transactions involving 16 unregistered overseas virtual asset operators, breaching the Act on Reporting and Using Specified Financial Transaction Information. Additional lapses included insufficient due diligence on high-risk accounts, poor transaction monitoring for suspicious patterns like rapid transfers to known risky wallets, and delays in updating user risk profiles as trading behaviors changed. The exchange's CEO, Cha Myunghoon, received a formal reprimand, and Coinone has 10 days to submit a defense before the penalties...