Blockchain specialized Law firm Veat, Successful consulting cases for virtual asset platforms

Law firm Veat received a request from Company A (hereinafter “the client”) that operates a virtual asset-related business to review the legality and PR agency legal risks of a virtual asset price prediction investment information platform.

Veat's virtual asset team thoroughly analyzed the business model of the virtual asset price prediction investment information platform operated overseas. In particular, we reviewed whether there were any parts that violated related laws and regulations, such as the "Act on Reporting and Use of Specific Financial Transaction Information" (hereinafter "Specific Financial Transaction Act"), with a focus on whether the client’s business model was in compliance.

Furthermore, when a domestic company engages a PR agency to promote and conduct PR activities for an overseas virtual asset platform through a contract, Veat's virtual asset team must comply with related laws and regulations, such as the "Act on Capital Markets and Securities Investment" (hereinafter "Capital Market Act"), and comprehensively explained guidelines to ensure the client can provide services safely.

Although domestic regulations related to virtual assets are not yet clearly defined, Veat interprets them based on experience handling various virtual asset cases, and reviewed the applicability of domestic law to the platform’s business model from various perspectives.

Virtual Asset Price Prediction Services and Legal Risks

To operate a virtual asset price prediction service legally and safely, it is necessary to comply with related laws and regulations. In particular, the "Act on the Regulation and Punishment of Illegal Activities" (hereinafter "Illegal Activities Regulation Act") deems as illegal activities any act of answering or predicting and betting on questions, and providing economic benefits when the prediction is correct.

Therefore, if participants bet on assets in a virtual asset price prediction service, the operator of the virtual asset price prediction platform needs to review whether the service may be deemed an illegal activity and, if necessary, proceed with appropriate legal procedures.

The Supreme Court deems as an accomplice and punishes an act of knowing about another’s crime and aiding and abetting it. If the promotional activities involve illegal business, there is a risk that promoting such illegal business will be deemed an aiding act facilitating a crime. To avoid such risks, a PR agency must review in advance whether the business being promoted complies with laws and regulations.

Even if a PR agency claims to have entered into a contract only for legal business activities, if the agency knows of the illegality of the activities, it may be recognized as aiding regardless of the contract terms.

Virtual asset price prediction and PR agency services involve legal risks, so it is recommended to seek advice from legal professionals with a deep understanding of the Illegal Activities Regulation Act and receive professional legal advice.

Legal regulations related to virtual assets are rapidly changing and complex, so accurately understanding legal regulations and adjusting business operations is a key element for stable service operation.

Law firm Veat provides differentiated legal services to clients based on extensive experience and deep expertise in the virtual asset and blockchain legal advisory sector.

Veat’s partner attorney, An Il-woon, demonstrates remarkable capabilities in the blockchain field and actively engages in advisory and contribution activities regarding various legal issues related to virtual currency and virtual assets. Attorney An Il-woon provides critical legal advice to numerous startups, blockchain platforms, and virtual currency exchanges based on his deep understanding of how blockchain technology is applied and regulated legally. He was appointed as a member of the IT Blockchain Special Committee of the Korea Bar Association in recognition of this expertise.

Furthermore, Veat’s senior foreign attorney, Song Woo-suk, served as a senior legal counsel at the virtual asset exchange Binance and is currently active as a legal advisory committee member of the Korea Blockchain Business Cooperative. Based on his experience at an international virtual asset exchange, Attorney Song Woo-suk provides in-depth advice on complex legal issues such as Anti-Money Laundering (AML) and cross-border M&A for numerous domestic and international blockchain projects and virtual asset transactions.

If you need legal advice for your virtual asset, virtual asset exchange, or other blockchain business, please contact Law firm Veat.

Thank you.

Law firm Veat