[Consultation] Legal Review of the Possibility of Issuing Domestic Stablecoins "Veat"

Law firm Veat took a referral from A, a company developing and supplying IT application software, and conducted a legal review regarding the possibility of domestic legal entities issuing Veat stable coins.

A stable coin is also known as a value-stabilizing currency, and unlike existing cryptocurrencies which have significant price volatility, it is a currency that maintains a stable price. Like stable coins, their value fluctuates due to various issues, but compared to existing cryptocurrencies, they are characterized by being fixed at a certain level.

Veat provided a review opinion including legal restrictions that would be expected if domestic legal entities issued and circulated Veat stable coins through a comprehensive review of relevant laws such as the “Act on Capital Markets and Investment Securities” (Capital Markets Act) and the “Electronic Financial Transactions Act.”

Many companies are now paying attention to stable coins as one solution because existing cryptocurrencies are not widely recognized as exchange media for goods or services due to price volatility.

Recently, the government also passed a partial amendment to the “Act on Reporting and Use of Financial Transaction Information” (Revised Act on Specific Financial Transaction Information) and is moving toward legalizing cryptocurrencies, and interest in the future of cryptocurrencies and blockchain is growing further.

Law firm Veat is an IT-specialized law firm composed of IT lawyers selected by the Korean Bar Association, lawyers from engineering backgrounds, including Partner Attorney Choi Seong-ho , and Senior Attorney An Il-won here.

Thank you.

Law firm Veat.