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Coinone Hit With $3.5M Fine and 3-Month Partial Service Ban
South Korea’s FIU uncovered systemic AML failures, forcing a freeze on new user registrations. Expect tighter scrutiny on foreign exchange connectivity ahead.
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Regulatory Crackdown on Coinone
South Korea’s Financial Intelligence Unit (FIU) has leveled a 5.2 billion won (approximately $3.5 million) fine against crypto exchange Coinone. The penalty follows an inspection that uncovered systemic failures in the platform's anti-money laundering (AML) protocols. Beyond the monetary penalty, regulators have ordered a three-month partial business suspension for the exchange, effective April 29, 2026.
This enforcement action highlights the intensifying regulatory pressure on digital asset service providers. Traders who rely on crypto market analysis should note that the FIU is specifically targeting lapses in customer identity verification and illicit connectivity with foreign entities.
The Scope of Violations
The FIU inspection revealed two primary areas where Coinone fell short of national compliance standards:
- Deficient Customer Identity Checks: Failure to properly verify user identities, which is a core requirement under South Korean financial law.
- Unregistered Platform Dealings: Inadequate controls regarding transactions with overseas crypto exchanges that are not registered or compliant with local oversight.
These lapses prevented the exchange from effectively monitoring for suspicious financial activity. The regulator determined that these failures were systemic, leading to the decision to freeze new user registrations and certain service expansions during the suspension period.