Key Takeaways:
- South Korea’s FIU fined Coinone 5.2 billion won and imposed a 3-month partial business suspension starting April 29, 2026.
- Coinone failed to verify roughly 70,000 customer identities and processed 10,113 trades through 16 unregistered overseas exchanges.
- CEO Cha Myung-hoon received an official reprimand; Coinone has 10 days to respond and may appeal via administrative lawsuit.
Coinone Hit With 5.2 Billion Won Fine and Partial Business Suspension
The Financial Services Commission’s FIU confirmed the sanctions on April 13, 2026, following an on-site inspection of Coinone conducted as part of the agency’s broader review of the country’s top virtual asset service providers. Several regional publications reported on the matter.
Coinone, often ranked South Korea‘s third-largest crypto exchange by trading volume, reportedly failed to properly verify customer identities in approximately 70,000 cases. Inspectors found roughly 40,000 instances involving unverifiable or incomplete ID documents and around 30,000 cases where users were allowed to trade without completing verification.
The exchange allegedly facilitated around 10,113 transactions tied to 16 unregistered overseas virtual asset platforms, a direct violation of the Act on Reporting and Using Specified Financial Transaction Information, commonly known as the Special Financial Information Act.
Additional infractions included inadequate transaction monitoring, failure to report certain overseas exchange dealings, and not halting restricted transactions after regulators requested it.
Coinone CEO Cha Myung-hoon reportedly received an official warning as part of the enforcement action. The exchange has ten days to submit additional opinions on the fine before it is finalized.
The partial suspension runs from April 29 to July 28, 2026. During that window, new customers cannot deposit, withdraw, or conduct external virtual asset transfers for crypto trading purposes. Existing account holders retain full access to trading, deposits, withdrawals, and Korean won transactions.
The FIU described the action as a “partial” suspension because it does not shut down the platform or restrict current users. The agency notified Coinone of the proposed penalties on March 27, 2026. Reports say a sanctions review committee met on April 13 and confirmed the measures.
Coinone insisted it is taking the matter seriously and actively working to fix the compliance gaps. The exchange indicated it will review whether to file an administrative lawsuit after deliberating with its board.
South Korea’s FIU has been rolling out enforcement actions in the order inspections were completed across the country’s major exchanges. Upbit, operated by Dunamu, received a similar three-month partial suspension and fine, and has filed an administrative lawsuit. Bithumb faced steeper penalties, including a reported fine of 36.8 billion won and a six-month partial suspension.
Coinone’s penalties align with the scale of violations identified during inspection. The FIU has consistently framed these actions as necessary to enforce real-name verification requirements and reduce money laundering exposure in the virtual asset market.
For Coinone, the suspension limits new-user onboarding and external wallet activity for three months, creating a short-term revenue drag. The exchange said it plans to focus on compliance upgrades during the period.
The actions signal that South Korea is continuing to press virtual asset platforms on AML and KYC standards, and other exchanges still awaiting final sanctions may face added pressure to strengthen their compliance programs before the FIU completes its review cycle.
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