Coinone Fine Highlights South Korea Crypto Compliance Crackdown

Coinone fine proceedings highlight South Korea’s tightening stance on cryptocurrency regulation, as authorities move to enforce stricter compliance standards.

The Financial Intelligence Unit said it plans to fine the exchange KRW5.2bn (USD3.49m) and impose a three-month partial business suspension for verification failures and transactions with unregistered overseas platforms.

Coinone failed to verify approximately 70,000 user accounts and facilitated around 10,000 transactions involving 16 unregistered foreign exchanges.

During the suspension, new users will be restricted from deposits and withdrawals. The regulator also issued a reprimand to the chief executive, with the exchange given 10 days to respond before penalties are finalised.