South Korean exchange Coinone is partially suspended for three months for violating anti-money laundering obligations, with a fine of approximately $3.56 million.

Mars Finance reports that, according to Korean media Edaily, the Korea Financial Intelligence Unit (FIU) completed an on-site inspection of the cryptocurrency exchange Coinone and determined that it violated obligations under the “Specific Financial Information Act.” The FIU decided to impose a partial suspension of operations for three months and a fine of approximately $3.56 million (5.2B Korean won), with the suspension period from April 29 to July 28. During the suspension, new customer virtual asset external transfers (deposits and withdrawals) are restricted, while transactions for existing customers continue normally. Additionally, the FIU issued a “reprimand warning” to Coinone’s CEO, Cha Myung-hoon. The FIU stated that Coinone assisted a total of 16 unregistered overseas virtual asset service providers in completing 10,113 asset transfer transactions and did not cooperate after multiple regulatory requests to cease related transactions; approximately 40k violations related to customer identity verification, including accepting documents that could not verify authenticity and incomplete address information; about 30k violations of transaction restriction obligations, involving allowing transactions for users who had not completed identity verification. Coinone stated that it takes the disciplinary action seriously and is actively working on rectification. As for whether to file an administrative lawsuit, a decision will be made after careful review by the board of directors.