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The South Korean exchange Coinone has been partially suspended for 3 months and fined approximately 3.56 million USD for violating anti-money laundering obligations

According to South Korean media Edaily, the Financial Intelligence Unit (FIU) of South Korea has determined that the cryptocurrency exchange Coinone violated obligations related to the Specific Financial Information Act after completing an on-site inspection. It decided to impose a partial business suspension for 3 months and a fine of approximately $3.56 million (5.2 billion won), with the suspension period from April 29 to July 28. During the suspension, new customers are restricted from external transfers of virtual assets (deposits and withdrawals), while existing customers can continue trading normally. In addition, the FIU issued a "warning reprimand" to Coinone's CEO, Cha Myung-hoon.The FIU stated that Coinone assisted 16 unregistered overseas virtual asset businesses in completing 10,113 asset transfer transactions in violation of regulations and failed to cooperate after regulatory authorities repeatedly requested to stop related transactions; there were approximately 40,000 violations in customer identity verification, including accepting documents that could not be verified for authenticity and reviewing customer address information that was incomplete; there were about 30,000 violations of trading restriction obligations, involving allowing transactions for users whose identity verification had not yet been completed. Coinone stated that it takes this sanction seriously and is advancing rectification, and whether to file an administrative lawsuit will be decided after careful consideration by the board of directors.

The U.S. Treasury Department will issue proposed rules requiring stablecoin issuers to assume anti-money laundering and sanctions compliance obligations

According to CoinDesk, the U.S. Treasury is set to release proposed rules requiring stablecoin issuers to establish standards to combat money laundering and sanctions violations.According to a summary of the proposal obtained by CoinDesk, the Treasury's Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) will jointly formulate rules that clarify how issuers can comply with the GENIUS Act passed last year, including establishing controls to block, freeze, and reject suspicious transactions. FinCEN will require issuers' anti-money laundering programs to be able to pause flagged transactions and focus more resources on high-risk customers and activities.When U.S. authorities pursue specific targets, regulated issuers must screen their records for activities related to flagged individuals or entities. OFAC requires issuers to operate risk-based sanctions compliance safeguards in both primary and secondary markets, identifying and rejecting transactions that may violate U.S. sanctions regulations. The proposal emphasizes respect for the industry, believing that financial institutions are best aware of their own money laundering and terrorist financing risks, and companies that maintain appropriate anti-money laundering measures typically do not face enforcement actions.U.S. Treasury Secretary Scott Bessent stated that these measures will protect the U.S. financial system from national security threats while not hindering the development of U.S. businesses in the stablecoin ecosystem. The proposal will enter a public comment period and may be revised before finalization.

South Korea plans to require cryptocurrency exchanges to bear "no-fault compensation obligations," with Upbit's hacking incident serving as the catalyst

According to Korea JoongAng Daily, the South Korean government is advancing legislation to introduce "no-fault compensation" rules similar to those in the banking industry for major cryptocurrency exchanges.It is reported that the Financial Services Commission (FSC) of South Korea is evaluating a requirement for virtual asset service providers to bear compensation responsibilities even in cases of hacking or system failures that result in user losses, regardless of fault. Currently, such mandatory compensation only applies to traditional financial institutions and electronic payment companies.This policy direction stems from a security incident on the Upbit platform, where approximately 44.5 billion won (about 30.1 million USD) worth of assets were transferred to an external wallet within 54 minutes, while regulatory authorities were unable to enforce compensation under existing regulations. South Korean financial regulators have also pointed out that the cryptocurrency trading industry has experienced frequent system failures in recent years. Data shows that from the beginning of 2023 to September of this year, the five major exchanges have experienced 20 system failures, affecting over 900 users, with total losses amounting to about 5 billion won, of which Upbit accounted for 6 incidents with losses of approximately 3 billion won.The draft also proposes to raise technical security requirements and increase the maximum fines for hacking incidents to 3% of annual revenue, similar to traditional financial institutions, up from the current fixed cap of 5 billion won. Additionally, the Upbit incident has sparked controversy over "delayed reporting." The platform discovered the anomaly at 5 AM but only reported it to regulators at 10:58, leading some lawmakers to question whether it intentionally waited until the merger process with its parent company Dunamu and Naver Financial was completed before disclosing the incident. Regulatory authorities are investigating the matter, but it is expected to be difficult to impose severe penalties under the current framework.

Bitget announces its partnership as the official partner of La Liga

ChainCatcher news, Bitget announced during the Token2049 event that it has become the official partner of La Liga, the top professional football division in Spain. This multi-year partnership is valued at tens of millions of dollars, bringing exclusive benefits to both parties and marking Bitget's strategic expansion in the sports sectors of East Asia (EASTERN), Southeast Asia (SEA), and Latin America (LATAM).La Liga President Javier Tebas stated, "La Liga has long been committed to innovation, being the first to apply technologies such as AI, VR, and big data to match strategies and performance analysis. Last season, we focused on this and launched a 'new era'. We see technological advancement as a core driving force. We hope to continue being pioneers in this field and strive tirelessly for it." La Liga's Director of International Affairs, Octavi Anoro, added, "This partnership is significant for La Liga's global expansion, particularly crucial for our strategic development in Asia, Turkey, and Latin America. La Liga has a broad fan base worldwide, and these fans are always at the forefront of innovation. This collaboration will help us better reach audiences in these markets while showcasing our shared values."Bitget CEO Gracy Chen expressed, "La Liga's forward-thinking aligns perfectly with Bitget's vision of promoting the global adoption of cryptocurrency. As the sports industry gradually embraces digital innovation, emerging technologies like Web3 are increasingly integrating into the sports sector. Our collaboration with La Liga will accelerate the adoption of cryptocurrency in sports, bringing new opportunities to fans and athletes. We believe this partnership will provide over a billion people with a new interactive experience and drive the widespread adoption of Web3 in emerging markets."In September 2024, Bitget celebrated its sixth anniversary, achieving sustained growth through continuous optimization of product features and providing excellent services, with global users surpassing 45 million. The concept of "Make It Count" runs through every collaboration of Bitget, emphasizing long-termism and staying true to its original intention, improving day by day. This philosophy complements the partnership with La Liga, as both parties will explore the intersection of cryptocurrency and sports, promoting the adoption of cryptocurrency and Web3 technologies in emerging markets. This collaboration not only helps Bitget and La Liga expand their influence globally but also aims to jointly lead the next billion users into a new era of future finance.
Bitget announces its partnership as the official partner of La Liga
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