In a significant regulatory action, South Korean authorities have taken steps against Coinone, one of the country's leading cryptocurrency exchanges, for serious compliance failures. According to the authors of the publication, it is concerning that the Financial Intelligence Unit (FIU) has uncovered substantial lapses in user identity verification, prompting a hefty fine and operational restrictions.
Investigation Findings
The FIU's investigation revealed that Coinone failed to verify the identities of users in around 70,000 instances, raising concerns about potential money laundering and other illicit activities. As a result, the exchange has been fined 4 million won and faces a three-month partial suspension of its operations.
Immediate Measures by Coinone
In light of these violations, Coinone has implemented immediate measures, blocking new customers from making crypto deposits and withdrawals. The exchange now has a 10-day window to contest the penalties imposed by the regulators as it seeks to address the compliance issues and restore its standing in the market.
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