South Korean regulators have fined cryptocurrency exchange Coinone 5.2 billion won ($3.49 million) and imposed a three-month suspension on new-user services due to anti-money laundering and customer verification failures. The Financial Intelligence Unit (FIU), under the Financial Services Commission, issued the penalty, which restricts new customers from depositing or withdrawing virtual assets from April 29 to July 28. Existing users can continue trading, and won deposits and withdrawals remain unaffected. The FIU cited Coinone's failure to verify customer identities in approximately 70,000 cases and its processing of transactions linked to 16 unregistered overseas virtual asset operators. The exchange has 10 days to respond before the penalty is finalized. This action is part of South Korea's ongoing efforts to enforce strict compliance with anti-money laundering regulations in the digital asset sector. Coinone's CEO, Cha Myung-hoon, received an official reprimand as part of the enforcement measures.