Cha&Kwon Law Offices examined supplemented Internal Control Guidelines for Unfair Business Practices for VASP “A.”  

With the amendment of the Act on Reporting and Using Specified Financial Transaction Information, starting from March 25th, 2021, virtual asset service providers (hereinafter “VASP”s) must report to Korea Financial Intelligence Unit (KoFIU). During the reporting process, individual Internal Control Guidelines to comply with relevant regulations are needed. KoFIU have criticized insufficient system establishment and pointed out that internal rules on unfair business practices of VASPs are lacking.  

According to the Capital Market Act, several types of unfair business practices are designated as prohibited items, such as internal transaction, market making, unfair transactions, etc. VASPs must also prepare adequate internal control guidelines to prevent such unfair business practices beforehand. Internal control guidelines should be reviewed by a legal expert for a comprehensive consideration of all legislations that might induce legal problems in the future.  

With abundant work experience on compliance tasks of VASPs and updates on legal issues regarding VASPs, Cha&Kwon Law Offices provide optimal solutions. If you need any legal consultation regarding virtual asset businesses, please don’t hesitate to contact Cha&Kwon Law Offices.