Overview
- South Korean authorities fined Coinone about $3.5 million and ordered targeted service suspensions after months of inspections into its anti-money-laundering program.
- Investigators said customer onboarding fell short, citing weak checks on occupation and income and gaps in screening for ties to sanctioned regions.
- Reviewers found Coinone missed red flags in transaction monitoring, including repeated transfers to high‑risk wallets, rapid in‑and‑out movements, and mixing‑like patterns.
- The order allows basic services for existing users under conditions but narrows new‑customer access, with one cited social post claiming a block on new user crypto deposits and withdrawals from April 29 that regulators have not formally announced.
- Officials framed the action as part of a broader push to tighten oversight of virtual‑asset exchanges in South Korea, with a focus on better FIU reporting and risk‑based monitoring that could raise compliance costs and limit higher‑risk features.