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South Korea's Financial Intelligence Unit has fined crypto exchange Coinone 5.2bn won ($3.49mn) and imposed a three-month partial business suspension over anti-money laundering failures.
The regulator said Coinone failed to verify user identities properly in roughly 70,000 cases, breaching know-your-customer requirements tied to real-name banking systems. It also facilitated around 10,000 transactions with 16 unregistered overseas exchanges, violating rules on dealing with non-compliant platforms, Yonhap reported.
Under the suspension, new users will be restricted from depositing or withdrawing funds for crypto trading, limiting onboarding activity during the penalty period. The FIU has also issued an official reprimand to the exchange's CEO and allowed the company 10 days to submit its response before the sanctions are finalised.
South Korean exchanges are required to enforce strict identity verification and report large transactions, forming a core part of the country's AML regime.