South Korea has fined crypto exchange Coinone $3.5 million and ordered a partial business suspension over anti-money laundering failures.
The Financial Intelligence Unit said Coinone failed to verify user identities in around 70,000 cases and processed over 10,000 transactions with unregistered foreign exchanges.
The regulator also accused the exchange of marking customer checks as complete despite missing key information and allowing transactions from users without proper verification.
The penalty includes a three-month partial suspension preventing new customers from depositing or withdrawing funds, alongside an official reprimand for CEO Cha Myung-hoon.
The enforcement follows a broader crackdown on crypto exchanges, after Bithumb was fined $24 million and handed a six-month partial suspension in March.
The regulatory push intensified after Bithumb mistakenly transferred 620,000 Bitcoin instead of Korean won, prompting calls from the Bank of Korea for stricter safeguards and trading controls.
Coinone has 10 days to challenge the decision before the penalties are finalised, as South Korean authorities continue tightening oversight of the crypto sector.
At the time of reporting, Bitcoin price was $74,480.68.