Coinone fined $3.5M, suspended for AML failures

Coinone was fined $3.5M and suspended for three months by South Korea's FIU for AML failures, including poor customer verification and dealings with unregistered platforms. Existing users remain unaffected.

South Korean cryptocurrency exchange Coinone has been fined approximately $3.5 million (5.2 billion won) and handed a three-month partial business suspension by the Financial Intelligence Unit (FIU) due to serious anti-money-laundering (AML) failures. Regulators found that Coinone failed to properly verify customer identities in about 70,000 cases, including 40,000 instances of incomplete documentation and 30,000 cases where users traded without full verification. Additionally, the exchange processed over 10,000 transactions through 16 unregistered overseas platforms, violating the Special Financial Information Act. Authorities cited inadequate transaction monitoring, insufficient internal procedures, and gaps in staff training. The suspension, effective from April 29 to July 28, 2026, restricts new user services and certain operations, but existing users can continue trading and making deposits or withdrawals. Coinone has 10 days to respond and may appeal the sanctions.