Coinone, a domestic virtual asset exchange, filed an administrative lawsuit asking a court to cancel a partial business suspension imposed by the Financial Intelligence Unit (FIU) under the Financial Services Commission.
According to the virtual asset industry on the 28th, Coinone the previous day appointed Lee & Ko and filed a suit with the Seoul Administrative Court against the FIU to cancel the partial business suspension. It also filed for an injunction to suspend the effect of the suspension ahead of Apr. 29, when the sanction takes effect.
The FIU, citing violations of the Act on Reporting and Using Specified Financial Transaction Information, imposed on Coinone a three-month partial business suspension (Apr. 29–Jul. 28) along with fines of 5.2 billion won. It also issued a "disciplinary warning" to the CEO. The sanctions follow the results of an on-site anti-money-laundering (AML) inspection conducted from Apr. 21 to May 16 last year.
The financial authorities said last year that they conducted an on-site anti-money-laundering inspection of Coinone and detected about 90,000 cases of violations of the specified financial information law. They said Coinone conducted a total of 10,113 transactions with 16 overseas unreported virtual asset business operators, and 70,000 cases of violations of customer verification and transaction restriction obligations under the law were confirmed.