South Korea Fines Coinone 5.2 Billion Won, Suspends New-User Crypto Deposits and Withdrawals for Three Months

South Korean regulators have imposed a 5.2 billion won ($3.49 million) fine on crypto exchange Coinone and ordered a three-month partial business suspension after identifying anti-money laundering and customer verification shortcomings. The decision was issued by the Financial Intelligence Unit (FIU) under the Financial Services Commission. Coinone is not being shut down. The restriction is aimed at new customers, who will be unable to deposit or withdraw virtual assets during the sanction period, while existing users are expected to continue trading. Korean won deposits and withdrawals will remain available, according to local reports. The FIU also delivered an official reprimand to Coinone CEO Cha Myunghoon. Coinone has 10 days to submit its position before the penalty is finalized. Regulators said Coinone failed to properly verify customer identities in about 70,000 cases. Authorities also cited transactions involving 16 unregistered overseas virtual asset operators, a breach of South Korean rules governing dealings with non-registered foreign platforms. Yonhap reported roughly 10,000 such transactions, while other local outlets put the figure at 10,113. Maeil Business reported total violations across categories of about 90,000. The suspension is scheduled to run from April 29 through July 28, local media said. During that period, the limitation applies to new-user crypto deposits and withdrawals rather than a broad halt to exchange operations. The action underscores South Korea's continued tightening of oversight for digital asset platforms, with regulators focusing on identity checks, suspicious transaction controls, and exposure to unregistered foreign counterparties.