Virtual Asset Referral Marketing Compliance Advisory

Cha & Kwon Law Offices advised a company operating a marketing business utilizing an overseas virtual asset exchange referral program, and reviewed whether marketing statements planned in connection with a new points system could raise regulatory and misleading advertising risks.

The client considered using short-term promotional language such as “potential token conversion” or “token launch plans” to support the rollout of the points program. However, as no specific token issuance plan had been finalized, the key issue was whether such statements could be perceived as an investment inducement or mischaracterized as unauthorized virtual asset-related business activity.

The review focused on the substance of the client’s operations and degree of marketing involvement, including potential exposure under Korean virtual asset regulatory frameworks, unreported business activity concerns, and misleading or exaggerated advertising risks. In particular, the analysis addressed the risk that token-related statements could be understood by users as confirmed plans, and that Korea-facing activities especially through Korean-language marketing channels could increase regulatory exposure depending on operational control.

Based on this assessment, the advisory emphasized that any token-related statements should clearly indicate that they remain under review and are not confirmed, and provided practical guidance on managing channel operation and involvement to mitigate regulatory exposure. Cha & Kwon Law Offices also identified risk escalation points that may arise as the business expands, enabling the client to reduce both regulatory and consumer-facing dispute risks.