South Korea’s Financial Intelligence Unit (FIU) has levied a 5.2 billion won ($3.49 million) fine against Coinone exchange for systemic anti-money laundering failures. The sanctions include a three-month partial suspension effective April 29, during which new users will be barred from deposits or withdrawals.

An inspection revealed Coinone processed 10,113 unauthorized transactions with 16 unregistered overseas operators. The exchange also failed basic compliance protocols—40,000 instances of improper ID verification and 30,000 lapses in restricting unverified users.

Separately, the Financial Supervisory Service (FSS) is targeting automated trading programs used for market manipulation. The crackdown reflects South Korea’s tightening oversight of crypto exchanges following the Terra-LUNA collapse.