Seoul: The country's anti-money laundering agency announced it has decided to impose a fine of 5.2 billion won (US$3.49 million) on Coinone, a major cryptocurrency exchange in South Korea, along with a three-month partial business suspension. This action comes as a consequence of Coinone's failure to meet customer verification obligations and its engagement in transactions with unregistered partners.

According to Yonhap News Agency, the Financial Intelligence Unit (FIU), operating under the Financial Services Commission, revealed that Coinone did not adhere to its responsibilities in verifying the identities of users in approximately 70,000 cases. Furthermore, the exchange facilitated around 10,000 transactions with 16 unregistered exchanges overseas, prompting regulatory action.

During the period of business suspension, Coinone will be restricted from allowing new customers to deposit or withdraw funds for cryptocurrency trading. The FIU also stated that Coinone's chief executive officer will receive an official reprimand. Coinone has been given a 10-day window to submit their response before the fine is finalized.

Cryptocurrency exchanges in South Korea are required to verify customer identities through real-name accounts linked to domestic banking partners. They are also expected to report transactions that exceed a certain threshold, underscoring the importance of regulatory compliance in the crypto industry.