Cha & Kwon Law Offices provided legal review services on whether an overseas business operator A is a virtual asset service provider (“VASP”) that needs reporting to the authorities under the Act on Reporting and Using Specified Financial Transaction Information (hereinafter “the Act”).

The definition and scope of VASP required to report to the Korea Financial Intelligence Unit (“KoFIU”) and the Financial Supervisory Service (“FSS”) are determined based on a review of the Act or the Enforcement Decree of the Act. However, it is very important to have a detailed analysis of the “Virtual Asset Business Reporting Manual” distributed by the above organizations and experience dealing with practical cases.

Although the requirements for reporting and registering VASPs are not simple, it is crucial for relevant businesses to proceed accurately and with caution under the guidelines, as failure to report is punishable by imprisonment for up to 5 years or a fine of up to 50 million won (Article 17 Paragraph 1 of the Act).

Consult with Cha & Kwon Law Offices—a leading firm with expert knowledge and practical experience in the industry—to thoroughly review whether a virtual asset business in your planning will be required to report to the authorities.