South Korean regulators have taken action against cryptocurrency exchange Coinone for failures in anti-money laundering compliance, continuing a pattern of enforcement against domestic crypto platforms.
The Financial Intelligence Unit (FIU), operating under the Financial Services Commission, determined that Coinone failed to verify user identities in approximately 70,000 cases. Regulators also found that the exchange processed more than 10,000 transactions involving 16 overseas platforms that were unregistered with domestic authorities, despite having received prior warnings.
Additional compliance failures included accounts being marked as fully verified despite missing essential customer information, and transactions not being restricted for users whose verification had not been completed. The FIU imposed a fine of 5.2 billion won, equivalent to approximately $3.5 million, along with a three-month partial business suspension. During this period, new customers will be barred from depositing or withdrawing funds.
Russian lawmakers have submitted a bill to the State Duma, the lower house of the Federal Assembly, proposing criminal liability for individuals and entities that organize or circulate cryptocurrencies and other digital assets without authorization from the country's central bank.
Under the proposed legislation, individuals could face fines of up to $4,000 and up to 4 years in prison for operating an unlicensed digital asset business. More severe penalties would apply when an organized group commits the offense or causes damage or income on a particularly large scale, with punishments including compulsory labor for up to 5 years or imprisonment for up to 7 years.
If enacted, investigations would be handled by the Investigative Committee and the Federal Security Service (FSB). The Supreme Court has not yet accepted the bill in its current form, which cites an insufficient explanation in the draft's supporting notes for the proposed criminal penalties.