South Korea Fines Coinone $3.5M, Suspends New User Services for 3 Months Over AML Violations

Key Takeaways:

• South Korea’s FIU fined Coinone 5.2 cardinal won and imposed a 3-month partial concern suspension starting April 29, 2026.
• Coinone failed to verify astir 70,000 lawsuit identities and processed 10,113 trades done 16 unregistered overseas exchanges.
• CEO Cha Myung-hoon received an authoritative reprimand; Coinone has 10 days to respond and whitethorn entreaty via administrative lawsuit.

Coinone Hit With 5.2 Billion Won Fine and Partial Business Suspension

The Financial Services Commission’s FIU confirmed the sanctions connected April 13, 2026, pursuing an on-site inspection of Coinone conducted arsenic portion of the agency’s broader reappraisal of the country’s apical virtual plus work providers. Several determination publications reported connected the matter.

Coinone, often ranked South Korea‘s third-largest crypto speech by trading volume, reportedly failed to decently verify lawsuit identities successful astir 70,000 cases. Inspectors recovered astir 40,000 instances involving unverifiable oregon incomplete ID documents and astir 30,000 cases wherever users were allowed to commercialized without completing verification.

The speech allegedly facilitated astir 10,113 transactions tied to 16 unregistered overseas virtual plus platforms, a nonstop usurpation of the Act connected Reporting and Using Specified Financial Transaction Information, commonly known arsenic the Special Financial Information Act.

Additional infractions included inadequate transaction monitoring, nonaccomplishment to study definite overseas speech dealings, and not halting restricted transactions aft regulators requested it.

Coinone CEO Cha Myung-hoon reportedly received an authoritative informing arsenic portion of the enforcement action. The speech has 10 days to taxable further opinions connected the good earlier it is finalized.

The partial suspension runs from April 29 to July 28, 2026. During that window, caller customers cannot deposit, withdraw, oregon behaviour outer virtual plus transfers for crypto trading purposes. Existing relationship holders clasp afloat entree to trading, deposits, withdrawals, and Korean won transactions.

The FIU described the enactment arsenic a “partial” suspension due to the fact that it does not unopen down the level oregon restrict existent users. The bureau notified Coinone of the projected penalties connected March 27, 2026. Reports accidental a sanctions reappraisal committee met connected April 13 and confirmed the measures.

Coinone insisted it is taking the substance earnestly and actively moving to hole the compliance gaps. The speech indicated it volition reappraisal whether to record an administrative suit aft deliberating with its board.

South Korea’s FIU has been rolling retired enforcement actions successful the bid inspections were completed crossed the country’s large exchanges. Upbit, operated by Dunamu, received a akin three-month partial suspension and fine, and has filed an administrative lawsuit. Bithumb faced steeper penalties, including a reported good of 36.8 cardinal won and a six-month partial suspension.

Coinone’s penalties align with the standard of violations identified during inspection. The FIU has consistently framed these actions arsenic indispensable to enforce real-name verification requirements and trim wealth laundering vulnerability successful the virtual plus market.

For Coinone, the suspension limits new-user onboarding and outer wallet enactment for 3 months, creating a short-term gross drag. The speech said it plans to absorption connected compliance upgrades during the period.

The actions awesome that South Korea is continuing to property virtual plus platforms connected AML and KYC standards, and different exchanges inactive awaiting last sanctions whitethorn look added unit to fortify their compliance programs earlier the FIU completes its reappraisal cycle.