Coinone, South Korea's third-largest cryptocurrency exchange, has faced penalties for noncompliance with anti-money laundering (AML) regulations. According to local media reports, the Financial Intelligence Unit (FIU) held Coinone accountable for failing to verify user identities in approximately 70,000 cases.
The FIU also cited Coinone for enabling over 10,000 transactions with unregistered offshore exchanges, despite several warnings. This marks the second regulatory action against a major exchange in South Korea within the last month, following Bithumb's $24 million fine and six-month partial suspension in March.
As part of the penalties, Coinone has been fined 5.2 billion won (approximately $3.5 million) by the FIU. Additionally, new users are unable to deposit or withdraw money from the exchange until the three-month partial business restriction is removed.