[Consulting] Review of Operating Policies of Virtual Currency Exchanges

Law firm Veat provided comprehensive legal counsel in the process of establishing internal operating policies based on a referral from A, a major virtual currency exchange company.

1. Overview of the Advisory
A, the largest virtual currency exchange company in Korea, felt the need to consolidate its internal and external operating policies during its growth phase and requested legal counsel from Law firm Veat. The core of this advisory focused on establishing operating policies related to trading with other virtual currency exchanges and internal controls for employees, while also ensuring that these established policies would not conflict with newly enacted government regulations or existing laws.

2. Law firm Veat’s Advisory
Law firm Veat analyzed areas of A’s operating policies that could potentially pose legal issues in the future, based on its understanding of regulatory trends in Korea and other countries. In addition, it referenced laws and regulations applied to the securities industry, which is most similar to the virtual currency exchange industry, and provided recommendations and proposals for modifying A’s established operating policies.

Due to issues arising concerning virtual currency exchanges, the government has recently been reviewing various regulations for virtual currency exchanges. This has caused considerable confusion for the exchange’s position, as there are no existing enacted regulations, and it is difficult to predict the form they might take if specific regulatory proposals are enacted.

Law firm Veat provided comprehensive virtual currency legal counsel, including the Capital Markets Act and Foreign Exchange Transaction Act, to ensure A’s successful completion of the process of establishing internal operating policies.