South Korean regulators have fined crypto exchange Coinone 5.2 billion won, or about $3.49 million, and ordered a three-month partial business suspension after finding anti-money laundering and customer verification failures. The decision came from the Financial Intelligence Unit, which operates under the Financial Services Commission.
The suspension does not shut the exchange entirely. Instead, it targets new customers, who will be barred from depositing or withdrawing virtual assets during the sanction period. Reports said existing users can continue trading, while won deposits and withdrawals will remain available.
The regulator also issued an official reprimand to Coinone Chief Executive Cha Myung-hoon. In addition, the exchange has 10 days to submit its opinion before the penalty is finalized.
Regulator Cites Verification Failures
The FIU said Coinone failed to properly verify customer identities in about 70,000 cases. Authorities also said the exchange processed transactions tied to 16 unregistered overseas virtual asset operators, which violated South Korean rules for handling business with unregistered foreign platforms.
Yonhap reported roughly 10,000 such transactions, while other local reporting put the figure at 10,113. Maeil Business said the total number of violations across categories reached about 90,000. Even so, the main findings across reports were consistent: weak customer due diligence and dealings with unregistered overseas exchanges drove the enforcement action.
The case adds to South Korea’s long-running effort to tighten oversight of digital asset platforms. Local exchanges operate under strict anti-money laundering rules, and regulators have repeatedly focused on identity checks, suspicious transaction controls, and unregistered foreign counterparties. Coinone now joins a growing list of exchanges facing direct enforcement instead of warnings alone. This broader point is an inference based on the FIU’s action and South Korea’s regulatory framework described in the reports.
What the Suspension Means for Coinone
The sanction is scheduled to run from April 29 to July 28, according to local reports. During that period, the restriction applies to new-user crypto deposits and withdrawals rather than all exchange activity. That makes the measure narrower than a full operating ban, but it still limits Coinone’s ability to add and activate new trading customers.
For existing users, the immediate effect appears limited. Reports said current customers can continue transactions, and fiat services in Korean won are expected to operate normally. Still, the penalty could weigh on Coinone’s standing in a market where compliance has become a core part of exchange competition. That last point is an inference from the scope of the sanction and the role of compliance in regulated exchange markets.
Coinone has not been ordered to close, but the case signals that South Korean authorities are willing to use targeted business restrictions when they find repeated compliance gaps. For now, the exchange faces a heavy financial penalty, limits on new-user crypto services, and a formal warning to its top executive as it prepares its response to regulators.
