Alphabiz - Coinone Faces Potential Suspension Over AML Violations, Decision Due April 13

Logo of Coinone. (Photo=Coinone)

[Alpha Biz= Paul Lee] Coinone is facing potential regulatory sanctions from financial authorities over alleged violations of anti-money laundering (AML) obligations.

According to industry sources on April 8, the Korea Financial Intelligence Unit under the Financial Services Commission notified Coinone on March 27 of a proposed sanction, including a three-month partial suspension of business operations for breaches of the Act on Reporting and Use of Certain Financial Transaction Information.

If finalized, the suspension would prohibit Coinone from processing external deposits and withdrawals of virtual assets for new users during the sanction period.

The final level of sanctions, including potential fines, will be determined at a sanctions review committee meeting scheduled for April 13.

This would mark the third major enforcement action against a domestic crypto exchange, following penalties imposed on Dunamu (Upbit) and Bithumb, which received three-month and six-month partial suspensions, respectively, for similar AML shortcomings.

Both companies have challenged the regulator’s decisions through administrative lawsuits. Market participants are closely watching an upcoming first-instance court ruling in Dunamu’s case, scheduled for April 9, as it may influence Coinone’s potential legal response.

Coinone stated that it will focus on the remaining review procedures ahead of the sanctions committee decision.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)