Coinone’s chief government is dealing with an official reprimand after South Korean regulators moved in opposition to the crypto change for a string of compliance failures, together with tens of 1000’s of unverified person accounts and repeated dealings with unlicensed overseas platforms.
Regulator Cites Tens Of Hundreds Of Violations
South Korea’s Monetary Intelligence Unit, working below the Monetary Providers Fee, discovered that Coinone didn’t confirm the identities of customers in roughly 70,000 circumstances.
The change was additionally accused of finishing buyer verification data even when key info was lacking — and of permitting transactions to proceed for patrons whose id checks had by no means been completed.
Based on a number of South Korean media studies, the FIU flagged greater than 10,000 transactions carried out with 16 overseas exchanges that had no registration with South Korean regulators. Regulators had warned Coinone about these dealings earlier than. The change saved going anyway.
South Korea’s FIU fined Coinone $4M and hit the change with a three-month partial suspension over AML violations.
New clients are blocked from crypto deposits and withdrawals beginning April 29.
— Token Metrics (@tokenmetricsinc) April 13, 2026
The FIU fined Coinone 5.2 billion gained, equal to about $3.5 million. A 3-month partial enterprise suspension was additionally imposed, blocking new clients from depositing or withdrawing funds throughout the ban.
Chief government officer Cha Myung-hoon obtained a proper reprimand, although studies be aware it carries no legal weight — the motion is administrative in nature. Coinone has 10 days to problem the penalties earlier than they’re finalized.
Second Main Trade Hit In A Month
This isn’t the primary time South Korean authorities have gone after a serious change in latest weeks. In March, Bithumb — the nation’s second-largest crypto platform by buying and selling quantity — was fined $24 million and handed a six-month partial suspension over related anti-money laundering failures.
That motion got here after Bithumb made headlines for a pricey clerical error: the change unintentionally despatched clients 620,000 Bitcoin, valued at roughly $42 billion on the time, as a substitute of 620,000 Korean gained.
The blunder prompted the Financial institution of Korea to name on lawmakers to impose tighter controls on exchanges, together with buying and selling curbs that would kick in throughout uncommon market exercise or sharp worth swings.
The change, ranked third in South Korea by measurement, now joins Bithumb as targets of what seems to be a widening regulatory push in opposition to crypto platforms within the nation.
Officers mentioned Monday that lawmakers ought to think about buying and selling halt mechanisms tied to irregular exercise — a proposal that indicators authorities are taking a look at structural fixes, not simply fines.
How Coinone responds to the FIU’s motion inside its 10-day window will doubtless form how the ultimate penalties are written.
Featured picture from Unsplash, chart from TradingView
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