Coinone fined $3.5 million for AML violations in South Korea

Key points:

• South Korean crypto exchange Coinone has been fined 5.2 billion won (approximately $3.5 million) for violating anti-money laundering (AML) requirements.
• Regulators uncovered thousands of cases of improper customer verification and transactions with unregistered foreign platforms.

According to leading South Korean media outlets, Coinone—the country’s third-largest cryptocurrency exchange—has been fined and partially suspended for violating anti-money laundering regulations.

The Korea Times, Chosun, and Yonhap News reported that the Financial Intelligence Unit (FIU), operating under South Korea’s Financial Services Commission, accused the platform of failing to comply with AML requirements. Specifically, the violations involved approximately 70,000 cases of inadequate user identity verification.

The FIU also stated that Coinone conducted more than 10,000 transactions with 16 overseas exchanges that were not registered with South Korean regulators, despite repeated warnings. Authorities further cited violations of customer due diligence procedures.

Tightening Regulation of Crypto Exchanges in South Korea

Earlier, Bithumb—the country’s second-largest cryptocurrency exchange by trading volume—faced similar sanctions. In March, it was fined $24 million and partially suspended for six months over alleged AML violations.

South Korea prepares new sanctions against crypto exchanges

Following inspections of Upbit, Bithumb, Coinone, Korbit, and GOPAX, the regulator is preparing personal and institutional sanctions.

Читать дальше

Regulatory scrutiny intensified following an incident in which Bithumb mistakenly sent Bitcoin to customers instead of 620,000 Korean won. The error raised concerns among financial authorities and prompted the Bank of Korea to call for stricter oversight of the industry.

The central bank also recommended introducing mechanisms to halt trading during periods of unusual activity or sharp price volatility in the cryptocurrency market.

Sanctions Against Coinone

According to media reports, the FIU fined Coinone 5.2 billion won (approximately $3.5 million) and imposed a three-month partial suspension. During this period, new customers are prohibited from depositing or withdrawing funds.

The exchange’s CEO, Cha Myung-hoon, received an official reprimand. The measure is administrative in nature and does not carry criminal liability.

Coinone has ten days to appeal the decision before the regulator finalizes the penalties and other sanctions.