Virtual assets, let’s issue them actively! Review of the securities nature of virtual assets.
Article posted in 2025-01-02 11:20:29 | VEAT
Law firm Veat recently provided legal advice to a client aiming to list their virtual assets (hereinafter referred to as "this virtual asset") on a domestic virtual asset exchange, utilizing Zero Knowledge Proof (ZKP) – one of the innovative technologies in the blockchain industry – for an overseas project.
What is Zero Knowledge Proof?
Zero-Knowledge Proof (ZKP) is a cryptographic technology that proves a fact is true without revealing any information. In other words, it’s a method of confirming the validity of information you know without disclosing the actual data or details to the other party.
This Zero-Knowledge Proof method is being re-examined in the virtual asset industry due to its ability to enable public verification while protecting personal information through encryption.
Review of the Legal Nature of this Virtual Asset
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Act on Capital Markets and Financial Investment Article 3 (Financial Investment Products) ① As used in this Act, " Article 4 (Securities) ① As used in this Act, " |
Generally, a financial investment product means a right acquired by agreeing to pay money or other property of value at a specific point in time, either currently or in the future, for the purpose of obtaining a profit or avoiding a loss, and involves investment risk. If a virtual asset qualifies as a financial investment product, it may be subject to the regulations of the "Act on Capital Markets and Financial Investment" (hereinafter referred to as "Capital Market Act").
Particularly, if a virtual asset qualifies as a security, it may be subject to various regulations of the Capital Market Act, so it is necessary to review the security nature of the virtual asset before issuing it to avoid violating the Capital Market Act.
Law firm Veat has provided a legal opinion in Korean and English, reviewing the security nature of this virtual asset based on its deep understanding of virtual assets and the Capital Market Act, and has helped the client with the procedure of applying for trading support (listing) on a domestic virtual asset exchange.
Law firm Veat with IT & Blockchain Expertise
Law firm Veat provides customized legal services, harmonizing technological complexity and legal requirements, based on its expertise and deep understanding of the blockchain and virtual asset industry. Particularly, Veat's IT & Blockchain Expert Team performs legal reviews reflecting technical characteristics and supports the successful operation and growth of virtual asset projects domestically and internationally.
Furthermore, Law firm Veat received commendation from the Ministry of Science and ICT for its contribution to the field of digital innovation, winning the "2023 대한민국 Digital Innovation Award," and utilizes the know-how accumulated through consulting experience with startups and IT companies to promptly and accurately meet the client’s needs.
Do you need legal advice?
Law firm Veat promises to continue resolving complex legal issues related to blockchain technology and contribute to the development of an innovative digital economy.
If you need legal advice regarding blockchain and virtual assets, please join Law firm Veat.
Thank you.
Law firm Veat