South Korea’s Financial Intelligence Unit (FIU) has fined crypto exchange Coinone 5.2 billion won (approximately $3.5 million) and imposed a three-month partial business suspension after an on-site inspection uncovered systemic failures in customer identity verification and dealings with unregistered overseas platforms. The sanctions were confirmed on April 13, 2026, with the suspension period set to run from April 29 to July 28, 2026. Coinone is generally ranked South Korea’s third-largest crypto exchange by trading volume.
70,000 Unverified Accounts and Trades Through 16 Unregistered Platforms
Inspectors found that Coinone failed to properly verify customer identities in approximately 70,000 cases. Around 40,000 of these involved unverifiable or incomplete ID documents, while roughly 30,000 cases involved users who were allowed to trade without completing verification at all.
The exchange also facilitated approximately 10,113 transactions tied to 16 unregistered overseas virtual asset platforms, a direct violation of South Korea’s Act on Reporting and Using Specified Financial Transaction Information, known as the Special Financial Information Act. Additional violations included inadequate transaction monitoring, failure to report certain overseas exchange dealings, and not halting restricted transactions after regulators requested it.
Coinone CEO Cha Myung-hoon received an official reprimand as part of the enforcement action. The exchange has ten days to submit additional opinions before the fine is finalized, and is deliberating whether to file an administrative lawsuit.
New Users Blocked From Deposits and Withdrawals; Existing Accounts Unaffected
The FIU described the action as a “partial” suspension because it does not shut down the platform or restrict current users. During the three-month window, new customers will be unable to deposit, withdraw, or conduct external virtual asset transfers for trading purposes. Existing account holders retain full access to trading, deposits, withdrawals, and Korean won transactions.
For Coinone, the practical impact is a block on new user onboarding and external wallet activity for three months, creating a short-term revenue drag during one of the exchange’s key growth channels. Coinone said it is actively working to fix the compliance gaps identified during the inspection.
Coinone Joins Upbit and Bithumb Under FIU’s Rolling Enforcement Campaign
South Korea’s FIU has been rolling out enforcement actions across the country’s major exchanges in the order inspections were completed. Upbit, operated by Dunamu, previously received a similar three-month partial suspension and fine, and has filed an administrative lawsuit challenging the decision. Bithumb faced steeper penalties, including a reported fine of 36.8 billion won and a six-month partial suspension.
The FIU has consistently framed the enforcement campaign as necessary to enforce real-name verification requirements and reduce money laundering exposure in the virtual asset market. Other exchanges still awaiting final sanctions may face added pressure to strengthen compliance programs before the FIU completes its review cycle.
