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(Photo = Coinone) |
[Alpha Biz= Kim Jisun] South Korean cryptocurrency exchange Coinone has been imposed a three-month partial business suspension and a fine of KRW 5.2 billion for supporting transactions with unregistered virtual asset operators and violating customer due diligence (CDD) obligations.
The Financial Intelligence Unit under the Financial Services Commission announced on April 13 that it had reached the decision during a sanctions review committee meeting, citing violations of the Act on Reporting and Use of Specific Financial Transaction Information. The company’s CEO was also issued a formal warning.
The partial suspension will run from April 29 through July 28. During this period, new customers will be restricted from transferring virtual assets to external platforms.
According to the FIU, Coinone facilitated a total of 10,113 virtual asset transfer transactions involving 16 unregistered overseas virtual asset operators. Despite requests from authorities to halt such transactions, the exchange continued to process them.
The exchange was also found to have violated CDD obligations in approximately 40,000 cases. These included completing verification using identification documents that could not be properly authenticated and failing to re-conduct customer verification within the required timeframe. In addition, Coinone allowed around 30,000 transactions to proceed for customers whose verification procedures had not been completed.
The FIU plans to finalize the fine amount after issuing a prior notice and reviewing the company’s response.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
