South Korea’s FIU Gives Coinone Advance Notice of AML Sanctions, Penalty Level Due Mid-April
Summary
- The Financial Intelligence Unit, or FIU, gave Coinone advance notice of sanctions tied to violations of anti-money laundering obligations and violations of the Act on Reporting and Using Specified Financial Transaction Information.
- The sanctions outlined by the FIU include a partial business suspension that would temporarily restrict new users’ transfers of virtual assets to and from external wallets.
- Coinone said it did receive advance notice related to the sanctions from financial authorities, but the level of penalties, including any fines, has not been finalized and it is actively presenting its case.
Forecast Trend Report by Period
South Korea’s Financial Intelligence Unit has given cryptocurrency exchange Coinone advance notice of sanctions over violations of anti-money laundering obligations, according to industry officials.
The FIU, which operates under the Financial Services Commission, notified Coinone late last month of planned sanctions for violations of the Act on Reporting and Using Specified Financial Transaction Information, industry officials said on April 8. The measures include a partial business suspension, which would temporarily restrict new users from transferring virtual assets to and from external wallets.
Upbit, Bithumb and Korbit have previously been sanctioned by the FIU for AML-related violations. Dunamu, the operator of Upbit, and Bithumb have filed administrative lawsuits against the FIU challenging those penalties.
Coinone said it had received prior notice from financial authorities related to the sanctions. The company added that the level of penalties, including any fines, has not been finalized and that it is actively presenting its case.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
