South Korea’s anti-money laundering agency has reportedly fined Coinone 5.2 billion won ($3.5 million) and imposed a three-month partial business suspension for failures in customer verification and transactions with unregistered overseas partners.
The Financial Intelligence Unit (FIU), which operates under the Financial Services Commission, said it decided to impose the sanctions on Monday, according to a translated report by Yonhap News Agency.
The suspension period runs from April 29 through July 28. During this window, new customers cannot deposit or withdraw funds for crypto trading. Existing customers continue to trade normally, per a separate report from Edaily.
The FIU found that Coinone failed to verify user identities in approximately 70,000 cases, Yonhap said. The exchange also facilitated about 10,000 transactions with 16 unregistered overseas exchanges, according to the report.
Approximately 40,000 instances of customer due diligence violations were identified, including cases where identity documents could not be properly verified or where users were approved with incomplete or inconsistent address information, Edaily reported. The regulator also flagged about 30,000 transaction restriction failures tied to accounts that had not completed required verification procedures.
Coinone’s chief executive will receive an official reprimand, while the exchange has been given 10 days to submit an opinion before the penalty is finalized, the FIU said.
“We are seriously aware of the FIU’s decision to impose sanctions,” Coinone said, according to Edaily. “We are closely examining the shortcomings and taking remedial measures regarding the points pointed out.”
The action against Coinone follows a similar enforcement case involving Bithumb, another major South Korean exchange. On March 9, the FIU sent Bithumb a notice of a six-month partial suspension for violating anti-money laundering obligations, according to a report from The Block.
That preliminary notice cited Bithumb’s dealings with unreported overseas virtual asset operators and neglect of customer due diligence. Bithumb’s CEO also faced disciplinary action in that case, per the report.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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