According to ChainCatcher, citing South Korean media outlet Edaily, the Financial Intelligence Unit (FIU) of Korea, after conducting an on-site inspection of cryptocurrency exchange Coinone, determined that it violated obligations under the Specific Financial Information Act and decided to impose a three-month partial suspension of operations and a fine of approximately US$3.56 million (5.2 billion won). The suspension period is from April 29 to July 28. During the suspension, the transfer of virtual assets (deposits and withdrawals) from new customers is restricted, while trading for existing customers continues as normal. In addition, the FIU issued a "reprimand warning" to Coinone CEO Cha Myung-hoon.
FIU stated that Coinone violated regulations by assisting 16 unregistered overseas virtual asset businesses in completing 10,113 asset transfer transactions, and failed to cooperate despite repeated requests from regulatory authorities to cease these transactions; there were approximately 40,000 violations in customer identity verification, including accepting documents whose authenticity could not be verified and verifying customers with incomplete address information; and approximately 30,000 violations in transaction restriction obligations, involving allowing transactions to be processed for users who had not completed identity verification. Coinone stated that it takes this disciplinary action seriously and is currently implementing corrective measures. Whether to file an administrative lawsuit will be decided after careful consideration by the board of directors.
