Financial Services Commission Imposes Three-Month Partial Suspension and 5.2 Billion Won Fine on Coinone for Violating the Act on Reporting and Use of Certain Financial Transaction Information

Coinone, a virtual asset exchange, has been issued a three-month partial business suspension and fined 5.2 billion won for supporting transactions by unregistered virtual asset operators and violating customer due diligence obligations.

On April 13, the Financial Intelligence Unit (FIU) of the Financial Services Commission held a disciplinary review committee meeting and decided on these sanctions against Coinone for violations of the Act on Reporting and Use of Certain Financial Transaction Information. The CEO received an official reprimand warning.

The period of partial business suspension will run from April 29 to July 28. During this time, new customers will be restricted from transferring virtual assets externally.

According to the FIU, Coinone supported 11,013 virtual asset transfer transactions with 16 unregistered overseas virtual asset operators. The FIU requested Coinone to cease transactions with unregistered operators, but Coinone continued to facilitate these transactions.

Coinone also violated approximately 40,000 customer due diligence obligations. This included completing customer verification with identification documents that could not be authenticated, and failing to re-verify customers within the required period. In addition, it was found that Coinone allowed about 30,000 transactions by customers whose customer verification process had not been completed.

The FIU plans to issue a preliminary notification of the fine to Coinone, collect opinions, and then finalize the amount of the fine to be imposed.

A Coinone representative stated, "We are thoroughly reviewing the issues raised and are taking corrective actions," adding, "We will do our best to create a safe trading environment by complying with regulations."

This content was produced with the assistance of AI translation services.