Coinone Hit With Fines and Trading Curbs Over AML Violations in South Korea

TheNewsCryptoPublicado a 2026-04-14Actualizado a 2026-04-14

Resumen

Coinone, South Korea's third-largest cryptocurrency exchange, has been fined 5.2 billion won ($3.5 million) and issued a three-month partial business suspension by the country's Financial Intelligence Unit (FIU). The penalties are due to multiple anti-money laundering violations, including a failure to verify user identities in approximately 70,000 instances. The FIU also found that Coinone processed over 10,000 transactions with 16 registered offshore exchanges and neglected its customer due diligence responsibilities. This is the second major regulatory action against a South Korean exchange in a month, following similar penalties against Bithumb. The Bank of Korea is now advocating for stricter regulations, including trading limitations to halt activity during abnormal market fluctuations.

According to local local media reports, Coinone, the third-largest cryptocurrency exchange in South Korea, is facing fines and a partial business suspension due to anti-money laundering violations.

Coinone was reportedly held by South Korea’s Financial Intelligence Unit (FIU) under the Financial Services Commission for noncompliance with anti-money laundering requirements, including the failure to verify user identities in around 70,000 instances, according to Monday’s reports in The Korea Times, Chosun, and Yonhap News.

In addition, the FIU said that, despite several warnings, Coinone enabled over 10,000 transactions with 16 offshore exchanges that were not registered with South Korean authorities.

The company is also accused of neglecting to limit transactions for clients whose verification steps were not completed and of classifying customer verification as complete while critical information was lacking, both of which constitute violations of customer due diligence responsibilities.

Enforcing Stringent Regulations

Following March’s $24 million fine and six-month partial suspension at Bithumb—the country’s second-largest crypto exchange by trading volume—for alleged anti-money laundering violations, this is the second regulatory action against exchanges in the last month to occur in South Korea.

Following an error by Bithumb, which resulted in the incorrect delivery of 620,000 Bitcoin to consumers (equivalent to around $42 billion at the time) rather than 620,000 Korean won, the Bank of Korea pushed for the adoption of stricter regulations on exchanges.

On Monday, the central bank suggested that legislators introduce measures to halt trading in the case of anomalous behavior or abrupt fluctuations in cryptocurrency values by instituting trading limitations. Until the three-month partial business restriction is removed, new users are unable to deposit or withdraw money from the exchange, and Coinone was fined 5.2 billion won ($3.5 million) by the FIU.

Highlighted Crypto News Today:

Ethereum Price Gains Traction as ETF Flows Shift and Network Activity Surges

Preguntas relacionadas

QWhat is the main reason Coinone is facing fines and a partial business suspension?

ACoinone is facing fines and a partial business suspension due to anti-money laundering (AML) violations, including the failure to verify user identities in approximately 70,000 instances.

QWhich regulatory body is responsible for holding Coinone accountable for these violations?

ASouth Korea’s Financial Intelligence Unit (FIU) under the Financial Services Commission is the regulatory body holding Coinone accountable.

QWhat was one of the specific failures in customer due diligence that Coinone was accused of?

ACoinone was accused of neglecting to limit transactions for clients whose verification steps were not completed and of classifying customer verification as complete while critical information was lacking.

QHow much was the fine imposed on Coinone by the FIU?

AThe FIU fined Coinone 5.2 billion won, which is equivalent to approximately $3.5 million.

QWhat recent regulatory action against another major South Korean exchange preceded this action against Coinone?

AThis action against Coinone follows a $24 million fine and a six-month partial suspension imposed on Bithumb, the country's second-largest crypto exchange, for alleged anti-money laundering violations in March.

Lecturas Relacionadas

The Value Distribution of Stablecoins

**Summary: The Value Distribution of Stablecoins** The article argues that stablecoins are evolving from mere trading tools into broader channels for dollar access. It divides the stablecoin ecosystem into four layers to analyze how value is distributed: 1. **Issuance Layer:** Mints stablecoins, holds reserve assets, and captures the spread between reserve yield and user costs (e.g., Tether, Circle). This layer currently earns the largest profit margin. 2. **Infrastructure Layer:** Connects stablecoins to the traditional financial system, handling fiat on/off-ramps, banking integration, compliance (KYC/AML), and asset management (e.g., Bridge, BVNK). This is the "unglamorous" but critical work, building the essential bridges between crypto and real-world finance. 3. **Acquiring/Distribution Layer:** Integrates stablecoins into merchant systems, manages payment flows, and provides enterprise financial software (e.g., Stripe, Coinbase). They act as the access point for businesses. 4. **Application Layer:** The end-users and businesses that ultimately use stablecoins for payments, settlements, or as a store of value. They benefit from convenience but have little pricing power. The core thesis is that while the issuance layer currently dominates profits, the often-overlooked **infrastructure layer holds significant long-term potential**. The real challenge and barrier to mass adoption is not the on-chain transfer of stablecoins (which is simple), but the complex "last mile" integration into existing business workflows, banking systems, and regulatory frameworks across different countries. Companies in this layer are currently in a "land grab" phase, investing heavily to build networks, secure bank partnerships, and establish compliance pathways. While their position is currently pressured by the profitable issuers above and distribution platforms below, the article suggests that if stablecoins become a default financial rail for businesses, the infrastructure providers who have done the hard work of integration will ultimately gain strong pricing power and become entrenched, essential players.

marsbitHace 4 hora(s)

The Value Distribution of Stablecoins

The Value Distribution of Stablecoins The article argues that stablecoins are evolving from a mere trading tool into a broad "dollar channel." It analyzes the industry's value chain through four layers: 1. **Issuance Layer (e.g., Tether, Circle):** The top layer that mints stablecoins, holds reserve assets, and captures the thickest interest rate spread. 2. **Infrastructure Layer (e.g., Bridge, BVNK):** Connects stablecoins to the traditional financial system, handling critical but complex "dirty work" like fiat on/off-ramps, banking integration, compliance (KYC/AML), and cross-border settlement. 3. **Acquiring/Distribution Layer (e.g., Stripe, Coinbase):** Embeds stablecoins into merchant systems, manages payment flows, and integrates with enterprise software. 4. **Application Layer:** End-users and businesses that ultimately use stablecoins for payments, settlement, or storing value. The author posits that while the issuance layer currently captures the most profit, the most overlooked and potentially critical layer is infrastructure. The core challenge for stablecoin adoption isn't the on-chain transfer (which is simple), but bridging the gap between blockchain and the real-world financial system. This involves solving practical problems for businesses: fiat conversion, reconciliation, tax handling, and user onboarding. Infrastructure companies are currently in a difficult "land-grab" phase—building networks, securing banking relationships, and achieving compliance country-by-country. They face pressure from both the profitable issuance layer above and distribution platforms below. However, the author suggests this layer is building a crucial moat. Once stablecoins become a default business rail, the infrastructure players who have done the hard work of integration may gain significant, durable value and pricing power.

链捕手Hace 4 hora(s)

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

Nvidia's recent announcement to issue at least $20 billion in senior notes, despite holding a strong cash position with over $48.6 billion in free cash flow last quarter, is not a sign of financial need. Instead, it represents a strategic move to leverage its high credit rating (recently upgraded to AA by S&P) to secure low-cost, long-term debt. This capital will support long-term AI infrastructure investments, data centers, R&D, supply chain prepayments, and strategic investments, while allowing the company to continue aggressive shareholder returns through stock buybacks and dividends. The decision reflects a mature capital management strategy: using debt to finance long-term growth assets is more efficient and less dilutive to shareholders than equity financing. It signals that Nvidia, like other tech giants (Alphabet, Meta, Amazon), is entering a new phase of heavy AI capital expenditure, shifting from a pure growth story to a story about capital allocation, credit strength, and long-term ecosystem positioning. The key question for investors is whether Nvidia can maintain its high cash flow generation and ensure that returns from these AI investments justify the cost of capital over the long term. The bond issuance amplifies its expansion capabilities but also ties its valuation more closely to the broader AI investment cycle's sustainability and profitability.

marsbitHace 4 hora(s)

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

marsbitHace 4 hora(s)

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

Liberland's congress has voted to remove Technology Secretary Dorian Stern Vukotić, following a resolution accusing him of attempting to hijack the Liberland.org domain, removing administrative multisig protections, blocking the president from voting, and launching unauthorized tokens. The incident serves as a case study in blockchain governance, highlighting risks that go beyond smart contracts to include control over domains, admin keys, and off-chain authority. For the crypto industry, it underscores the need to scrutinize decentralization claims against operational realities, where a small group can still compromise governance. The story reflects a broader market shift where infrastructure security and governance are becoming as critical as price action. Editorial framing should treat the development as a verified information signal about governance risks, avoiding overstatement of Liberland's legal status and leaving room for follow-up evidence.

bitcoinistHace 5 hora(s)

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

bitcoinistHace 5 hora(s)

How to Do Research Well: Deliberately Practice the Real Skills That Matter

No one truly teaches you how to do research. You're often given a desk, a pre-selected problem, and vague instructions to "create something new." Consequently, many people reverse-engineer the job based on visible outputs—papers, posts, announcements—learning only how to *appear* like a researcher rather than how to *become* one. True research capability is built from stacking small, trainable skills, nearly all of which can be developed through deliberate practice. **Pick Your Own Problem:** Most researchers absorb problems from advisors or trends, lacking the underlying reasoning. Choosing a problem you genuinely care about, as John Schulman advises, leads to original work. Develop "taste" like a muscle: predict experiment outcomes, guess paper results from methods, and track which findings remain important over time. **Upgrade Your Inputs:** Relying on shared reading lists (arXiv hot lists, filtered group chats) leads to unoriginal conclusions. Undervalued old literature often holds crucial insights (e.g., MoE, LSTM, backpropagation). Richard Sutton's "The Bitter Lesson" or Claude Shannon's 1952 talk on creative thinking are more predictive than lengthy modern surveys. Breadth matters as much as depth: draw from neuroscience, mechanism design, hardware knowledge, and honest statistics. Read papers directly, especially appendices and limitations sections. **Write Everything Down:** As Paul Graham noted, writing exposes flaws in seemingly mature ideas. Writing is the cheapest defense against self-deception. Following Feynman's principle, Darwin programmatically wrote down facts contradicting his theory to combat memory bias. Maintain a detailed log of hypotheses, setups, predictions, results, and updated understandings. Reviewing past logs fosters essential humility.

marsbitHace 6 hora(s)

How to Do Research Well: Deliberately Practice the Real Skills That Matter

marsbitHace 6 hora(s)

Trading

Spot

Futuros