Virtual Asset Referral Compliance Advisory

Cha & Kwon Law Offices advised a company operating a referral-based business model linked to overseas virtual asset exchanges. The firm conducted a comprehensive review of whether the business structure could trigger regulatory obligations under the Specific Financial Information Act and other relevant domestic financial regulations.

Moving beyond a formalistic review of the referral program, our firm analyzed the client’s actual operational involvement to determine if their activities could be legally characterized as brokerage, intermediation, or agency in virtual asset transactions. The review addressed critical factors, including domestic solicitation risks, the distinction between passive promotion and active transaction involvement, and the legal implications of the referral revenue model based on prevailing statutes, judicial precedents, and regulatory guidance.

As a result, Cha & Kwon Law Offices advised that, provided the business operates within a strictly defined and limited scope, it was unlikely to be classified as a Virtual Asset Service Provider (VASP). Additionally, the firm identified contingent expansion scenarios that could escalate regulatory exposure and provided practical guidelines on channel operations, user communications, and information disclosure to ensure the long-term sustainability of the business.

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