[Consultation] Review of legal documents for virtual asset purchase agreements

Law firm Veat conducted legal review of virtual asset sales agreements based on a request from A, a blockchain company.

First, the legal review was conducted in a direction that was most favorable to the buyer. To prepare for cases where the issuer of the virtual asset goes out of business and the virtual asset is not listed on an exchange, we modified clauses and statements, adjusted the scope of coverage, and revised wording concerning losses that could be interpreted as fraudulent inducement, considering the buyer’s perspective.

Given that both parties are foreign, we assessed the situation as having a low probability of the relevant jurisdiction being the Korean legal system, and suggested mediation through the Korea International Arbitration Center as a dispute resolution method.

News is coming that a company is entering the NFT market, and NFTs are emerging as an investment product that various companies are paying attention to. Consequently, inquiries regarding related sales and investment contracts are being made through Law firm Veat.

In relation to virtual asset transactions, there are risk factors that can occur during the transaction, such as relying on a used Bitcoin that does not circulate, so it is important to receive advice from legal professionals who can consider high understanding and legal aspects concerning blockchain business, including Bitcoin and virtual assets.

Law firm Veat helps ensure compliance with related laws such as the “Act on Reporting and Use of Financial Transaction Information” and the “Act on the Capital Market and Financial Investment” based on understanding of Bitcoin, blockchain, and cryptocurrency in relation to virtual asset investment contracts.

If you need legal review regarding virtual asset sales agreements, the securities status of NFTs and tokens, and whether you are a virtual asset business operator, please contact Law firm Veat anytime.

Thank you.
Law firm Veat