Legal Review on Whether a VASP is Subject to a Specific Act

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

A review of the Act or the Act’s Enforcement Decree will decide the definition and breadth of VASP that must be reported to the Korea Financial Intelligence Unit (“KoFIU”) and the Financial Supervisory Service (“FSS”). However, it is crucial to have expertise dealing with real-world cases and a thorough understanding of the “Virtual Asset Business Reporting Manual” published by the aforementioned authorities.

The criteria for reporting and registering VASPs are not straightforward, but it is imperative for pertinent enterprises to follow them precisely and cautiously since failing to do so might result in up to a 5-year prison sentence or a fine of up to 50 million won (Article 17 Paragraph 1 of the Act).

To carefully assess if a virtual asset business you are considering will need to file reports with the authorities, consult with Cha & Kwon Law Offices, a leading law firm in the field with in-depth expertise and practical experience in the sector.