Korean Crypto Exchange Coinone Faces $3.5 Million Fine and Suspension

South Korea's regulatory body has imposed a hefty fine on Coinone, the country's fourth-largest centralized crypto exchange, for anti-money laundering (AML) compliance gaps.

The $3.5 million fine is part of an ongoing crackdown on AML rules in the crypto sector, which has seen top exchanges face significant penalties in recent months.

According to a Financial Intelligence Unit investigation, Coinone failed to verify the identities of 70,000 users and supported 10,000 transactions with unregistered overseas exchanges.

The exchange will also face a three-month business suspension for its AML lapses.

South Korea's AML guidelines require crypto exchanges to verify user identities and report suspicious transactions above certain thresholds.