Coinone Faces Multi-Million Dollar Fine and Business Suspension

The Financial Intelligence Unit (FIU) has taken action against Coinone, one of South Korea's leading cryptocurrency exchanges, over concerns about anti-money laundering practices.

According to the FIU, Coinone failed to comply with its obligations to verify the identities of users in approximately 70,000 cases. The exchange is also accused of supporting around 10,000 transactions with 16 unregistered exchanges overseas.

The agency has fined Coinone 5.2 billion won (approximately $3.49 million) and imposed a three-month partial business suspension. During this period, new customers will be unable to deposit or withdraw their money for crypto trading.

The FIU has also announced that Coinone's CEO will receive an official reprimand. The agency will give the exchange 10 days to submit its opinion before finalizing the fine.