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- Coinone faces a 3-month suspension and a $3.5M fine after AML breaches were found.
- FIU flags 40,000 KYC failures and 30,000 transaction rule violations.
- External transfers halted; trading and KRW services remain active for users.
South Korea-based cryptocurrency exchange Coinone has received a three-month partial business suspension and a 5.2 billion won ($3.5 million) fine. The action follows findings of multiple anti-money laundering violations identified during a regulatory inspection conducted last year.
As per the local media report, the penalties stem from an investigation by the Financial Intelligence Unit between April and May 2025. Authorities found that Coinone breached the Specific Financial Information Act. The exchange enabled transfers of 10,113 digital assets through 16 foreign service providers not registered under local law.
AML Failures Lead to Coinone Suspension Measures
There were also significant compliance gaps, regulators found. About 40,000 cases were failures to verify customer identity. Another 30,000 recorded breaches of transaction limitation requirements. These findings were worrying with respect to internal control systems.
The partial suspension is from April 29, 2026, to July 28, 2026. Users would not be able to carry out virtual asset transfers with external platforms during this time. But existing customers can maintain their trades without reforms.
KRW deposits and withdrawals will not be affected during the restriction period. The measures only apply to external transfer activity. This guarantees that active users retain access to key services during the enforcement window.
Coinone Chief Executive Officer Cha Myung-hoon has received an official warning. The regulator has allowed the exchange 10 days to submit its position. A final decision will follow after reviewing the response.
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Coinone stated that it takes the action seriously. The company said it will move quickly to correct the issues. It also confirmed that its board is reviewing the option of legal action against the decision.
Coinone Eyes Sale as Competition Intensifies
Ownership changes were indicated earlier in January 2026 reports. Cha Myung-hoon, chairman of Com2uS Holdings, is considering selling a stake of 53.44%. The stake includes 19.14% owned directly by the company and 34.3% indirectly through The One Group.
Com2uS owns a stake of 38.42% in the exchange. The sale comes amid a drop in valuations, with the book value being 75.2 billion won. It is a drop of 22.64%.
Increased competition in the local industry has also been noted. Upbit and Bithumb remain at the top in terms of trading volume, putting even more pressure on other exchanges.
The regulatory enforcement brings attention to the strict nature of regulation in South Korea. There continues to be the application of AML laws among the exchanges.
It indicates the dangers associated with failing to meet regulations. The regulatory enforcement can significantly affect the operations of the affected exchanges. Coinone is now faced with both compliance and market challenges ahead.
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