Cha & Kwon provided legal opinion on foreign transactions of virtual assets with non-residents if they violate the Specified Financial Information Act, Foreign Exchange Transaction Act, and Commercial Act. When it comes to foreign transactions, corporates are obliged to report their transactions. Our client inquired if their business conducts violate any relevant regulations and if there is an obligation to change the business purpose on the company registry and/or articles of incorporation.

Foreign Exchange Transactions Act is not confined to direct foreign exchange only but applies to general exchanges such as transaction, payment, receipt, and other relevant actions taking place between Korea and foreign countries. Thus, when exchanging virtual assets between non-residents, a detailed examination is needed to see if ‘virtual asset’ and their form of the transaction fall under the definition of ‘capital transaction’ defined by the Foreign Exchange Transactions Act. 

As the professional legal advisor, Cha & Kwon analyzed the definitions of legal terms such as 'VASP' and 'capital transactions,' and provided legal opinions after reviewing relevant Articles and precedent court cases.