South Korea's third-largest cryptocurrency exchange, Coinone, has been fined $3.5 million and ordered to a three-month partial business suspension due to anti-money laundering failures.
The Financial Intelligence Unit (FIU) accused Coinone of not verifying user identities in approximately 70,000 cases and facilitating over 10,000 transactions with unregistered foreign exchanges. The exchange also allegedly marked customer verifications as complete despite missing information and failed to restrict transactions for unverified customers.
Coinone's CEO, Cha Myung-hoon, received an official reprimand. The exchange has 10 days to dispute the penalties.
This action follows a similar crackdown on Bithumb last month, which received a $24 million fine and a six-month partial suspension for AML failures.