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Media Coverage HOTDecent Law Firm Warns: “Even ‘Simple’ Promotion and Referral Activities in Crypto Can Cross Legal Boundaries”
As the virtual asset market continues its integration into Korea’s formal regulatory framework, business models operating outside centralized exchanges—such as referral platforms, trading signal groups, and subscription-based chart analysis services—are increasingly affected by evolving regulatory scrutiny. Structures that were once widely perceived as mere promotional or content-based activities are now facing closer examination under the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”) and the Virtual Asset User Protection Act, particularly where they may be interpreted as constituting “business activities.” Recently, Korean financial authorities have emphasized that regulatory risk does not arise solely from the provision of referral links themselves. Instead, greater attention is being paid to how users are induced to trade, how revenues are generated, and whether elements such as commercial intent, repetitiveness, and compensation are combined in a manner that may amount to brokerage, intermediation, or other regulated business conduct. As a result, industry participants increasingly recognize that regulatory assessments hinge less on a service’s name or outward appearance and more on its actual operational structure, fund flows, and contractual arrangements. That said, not all referral-based structures or activities related to overseas virtual asset exchanges automatically qualify as “virtual asset service providers” subject to reporting obligations under the AML Act. Whether an entity falls within the scope of a regulated virtual asset service provider depends on a comprehensive assessment of its business model, transaction methods, and the degree of commerciality, compensation, and continuity involved. Consequently, both reporting obligations and potential violations may vary significantly by structure. In particular, referral-based crypto businesses remain an area where judicial precedent has yet to be clearly established. In practice, the prevailing view is that regulatory risk ultimately depends on how customers are attracted, how compensation is structured, and whether the overall operation can be characterized as continuous business activity. Against this regulatory backdrop, Decent Law Firm has strengthened its structural advisory services for referral- and content-based crypto platform operators through its dedicated Virtual Asset Practice Team. Rather than focusing solely on categorical determinations of legality, Decent adopts a substance-over-form approach—analyzing regulatory exposure based on the actual operation of the business and providing integrated advice on corporate structuring, contractual frameworks, and tax arrangements to manage risk proactively. In many referral-based businesses, revenues and commissions are often fragmented across individual operators or partner entities, leading to accumulated tax exposure. In addition, disputes frequently arise when incentives already paid cannot be recovered following refunds or chargebacks. Where terms of service, partner agreements, and settlement rules are inadequately structured, customer complaints or internal disputes may escalate into external audits or tax investigations. Decent addresses these structural vulnerabilities by diagnosing risks at an early stage and advising on the establishment of centralized corporate operating systems and internal control frameworks. Managing Partner Attorney Jin Hyeonsu of Decent Law Firm commented, “The core issue in crypto referral businesses is not the referral format itself, but how the business is actually operated. If fund flows, contractual structures, or content operations are misaligned, tax, administrative, and even criminal risks can arise simultaneously. Post hoc explanations have clear limitations—designing a business structure from the outset with regulatory standards in mind is critical.” Managing Partner Attorney Hong Pureun added, “Because referral-based crypto businesses remain an area without well-established judicial precedent, uniform conclusions of illegality are inappropriate. What is required instead is a structure-specific and type-specific analysis. Decent combines its virtual asset legal expertise with crypto-focused tax capabilities to deliver tailored legal opinions and structural advisory services suited to each client’s operational reality.” As virtual asset regulations become increasingly detailed, many in the industry observe that it is no longer feasible to continue operating under legacy, informal structures. As regulatory standards are formalized, internal structures—rather than external branding—are becoming both a source of risk and a key competitive differentiator. Decent Law Firm continues to expand the role of its Virtual Asset Practice Team, leveraging accumulated advisory experience in regulatory “borderline” areas such as referrals, trading signal groups, and crypto platforms. Through this expertise, Decent aims to serve as a legal partner that provides clear, predictable operational standards for businesses navigating regulatory uncertainty. The firm notes that “for companies currently operating or considering launching virtual asset–based businesses, now is the critical time to comprehensively review their structures and manage risk through professional legal and tax advisory services.”
2025-12-17 E동아(EDongA) -
Media Coverage HOT
Regulatory Expansion Pushes Crypto “Borderline Businesses” Into the Spotlight, Fueling Industry Confusion
FIU and FSC warn that referral marketers and trading signal groups may qualify as “unregistered VASPs” — startups say compliance costs are unsustainable As South Korea accelerates the institutionalization of the crypto-asset market, financial regulators are increasingly directing their enforcement efforts beyond exchanges toward businesses operating in regulatory gray areas. Services that were long perceived as peripheral — including crypto wallets, staking platforms, and even overseas exchange referral marketers — now face the risk of being classified as Virtual Asset Service Providers (VASPs) under Korea’s regulatory framework. Industry voices are sharply divided. Some argue that authorities are stretching financial regulation into areas that should be treated as IT infrastructure or marketing services, while others maintain that stricter oversight is unavoidable to protect investors. “Control of the Key Means Control of the Business”: The Regulatory Fate of Wallets and Staking Services In the blockchain ecosystem, control over digital assets has become the decisive criterion for regulatory classification. Even if a business presents itself as a software provider or fintech platform, regulators take the position that any entity exercising practical control over users’ asset movement or management may qualify as a VASP. Crypto wallets and staking services are at the center of this shift. Guidance issued by the Korea Financial Intelligence Unit (FIU) makes the regulator’s intent clear: non-custodial wallets that merely provide software without holding private keys may fall outside the reporting obligation, but any structure allowing the operator to exert control — even indirectly — risks triggering VASP status. Staking services face similar scrutiny. While some models resemble passive technical facilitation, others involve asset pooling or operational discretion that could be viewed as asset management. As discussions surrounding the forthcoming Crypto Asset Industry Act continue, such services are increasingly likely to be brought under formal regulation. As a result, companies that once identified as technology infrastructure providers now find themselves confronting full-scale financial compliance requirements. “Are YouTubers Next?” Warning Notices Hit Referrals and Trading Signal Groups The regulatory shockwaves are perhaps strongest in the marketing space. Individuals and groups promoting overseas exchanges via YouTube, Telegram, or open chat rooms — earning commissions through referral links — as well as so-called “trading signal” or “leading” groups, are now firmly on regulators’ radar. The Financial Services Commission (FSC) and FIU have recently warned that unregistered crypto-related activities may constitute illegal virtual asset business operations. Practices once dismissed as simple information sharing or affiliate marketing are now being interpreted as intermediation. Under this interpretation, distributing exchange referral links or actively encouraging specific token purchases may expose operators to liability not only under the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”), but also under the Capital Markets Act for unlicensed investment advisory or brokerage activity. Compliance Costs vs. Criminal Liability: A Survival Dilemma for Startups For many borderline businesses, compliance is not merely difficult — it may be economically impossible. To obtain VASP registration under Korean law, companies must secure ISMS certification and establish robust anti-money laundering (AML) systems. Initial implementation alone requires significant capital investment, with annual maintenance costs reaching hundreds of millions of won. The most formidable hurdle, however, is securing a real-name verified bank account, which remains effectively unattainable for most startups. Commercial banks, wary of AML risks, continue to apply extremely conservative standards. Yet non-compliance is not an option. Operating without registration may result in criminal penalties of up to five years’ imprisonment or fines of up to KRW 50 million, alongside business suspension and long-term exclusion from financial services — consequences tantamount to forced closure. As one industry insider put it, “If we try to comply, we run out of money and hit the banking wall. If we do nothing, we become criminals.” “Business Models Must Be Legally Re-Engineered” Legal experts caution that the regulatory environment has moved beyond the question of whether a company is technically subject to VASP registration. Jin Hyeonsu, Managing Partner at Decent Law Firm, explains: “Recent regulatory trends reflect a more sophisticated approach — one that evaluates the substantive function and legal nature of a business model rather than its formal label.” He adds: “For referral marketers, trading signal groups, and infrastructure providers, AML Act issues often overlap with Capital Markets Act risks relating to unregistered investment advice or brokerage. In this transitional regulatory phase, reactive measures are no longer sufficient. Only proactive legal structuring and compliance design can ensure business sustainability. As the crypto market matures, the line between innovation and illegality continues to blur. Under an increasingly assertive regulatory regime, businesses operating in gray zones now face an unavoidable imperative: establish clear legal positioning — or risk being pushed out of the market altogether.
2025-12-10 스타트업엔(StartupN) -
Media Coverage HOT
Decent Law Firm: “2025 Virtual Asset Investigations Intensify Across the Board… Pre-Compliance Checks on Business Structures Are Essential”
Analysis suggests that as of 2025, investigations into virtual asset crimes in South Korea have shifted to an "all-encompassing" enforcement regime. Authorities are moving beyond simple fraud cases to scrutinize the entire flow of funds, targeting investment signal groups (so-called “reading rooms”), referral structures, arbitrage trading utilizing the "Kimchi Premium," money laundering via stablecoins, and illegal foreign exchange transactions through unregistered overseas exchanges. According to the Financial Intelligence Unit (FIU), Suspicious Transaction Reports (STRs) related to virtual assets have been steadily increasing since 2021. Data released by the Korea Customs Service and the Customs Border Control Training Center reveals that approximately 11.4 trillion KRW in illegal foreign exchange transactions was detected between 2021 and September 2024. Notably, about 83% of these transactions were analyzed to be illegal foreign exchange trades using virtual assets. Decent Law Firm explained, "Investigative agencies are moving away from traditional fraud investigation methods and are now approaching cases by scrutinizing the entire investment structure and fund movement." The firm added, "Activities such as operating signal groups, referral schemes, exploiting the Kimchi Premium, and stablecoin-based illegal forex trading can all be linked to charges of fraud, violation of the Act on Regulation of Conducting Fund-Raising Business Without Permission (similar to Ponzi schemes), the Capital Markets Act, the Foreign Exchange Transactions Act, and the Act on Reporting and Using Specified Financial Transaction Information (AML regulations), depending on the actual flow of funds." Focus on “Signal Groups” and Referral Systems One of the primary areas currently under scrutiny is "investment signal groups" based on Telegram or Open Chat rooms, as well as referral-based recruitment structures. A typical pattern involves recruiting investors with promises of high returns, inducing them to transfer funds to unregistered overseas exchanges or personal wallets, and operating based on referral fees. Authorities view that if this structure is combined with false or exaggerated advertising, it constitutes fraud. Furthermore, collecting investment funds from unspecified individuals may violate the Act on Regulation of Conducting Fund-Raising Business Without Permission, and if the operation involves investment advice or discretionary management, it could be deemed an unregistered investment advisory service. Crackdown on Kimchi Premium Arbitrage Arbitrage trading exploiting the "Kimchi Premium" remains a target for enforcement. While the premium gap has narrowed in 2025, illegal arbitrage and foreign exchange attempts using it persist. In particular, collecting funds from third parties for repeated remittances or distributing profits using borrowed-name or corporate accounts can lead to charges under the Foreign Exchange Transactions Act, tax evasion, and money laundering. Evolving Methods: Stablecoins and Illegal Forex Trading Methods for illegal foreign exchange transactions using overseas unregistered exchanges and stablecoins are becoming more sophisticated. Recently, investigators have uncovered cases of "coin-based illegal forex trading," where cash is received in Korea and an equivalent amount of Tether (USDT) is transferred to a third party abroad. This method is harder to detect than traditional dollar-based illegal forex trading and raises concerns about its use in large-scale money laundering. Strengthened AML Regulations Simultaneously, Anti-Money Laundering (AML) regulations for domestic Virtual Asset Service Providers (VASPs) have been significantly tightened. The government is intensively monitoring exchanges, wallet services, and custody providers for compliance with STR obligations, the Travel Rule, and high-risk wallet blocking systems. There are increasing instances where failures in internal controls lead not just to administrative sanctions but to criminal liability. Expert Advice: “Pre-Compliance is the Best Defense” Jin Hyeonsu, Managing Partner of Decent Law Firm, emphasized, "The era of operating a business hoping 'there won't be any problems' is over as of 2025." He advised, "From the initial business stage, companies must comprehensively review their fee structures, referral methods, investment solicitation procedures, contracts, terms of service, and fund flows." He further noted, "Defending legally after an investigation has already begun has its limits. Pre-compliance checks and structural design are the most realistic strategies for risk management." Decent Law Firm operates a dedicated Virtual Asset Team and has accumulated extensive practical experience through successful early-stage defense cases—including non-indictment decisions and dismissal of arrest warrants—as well as regular legal advisory services for blockchain enterprises. Experts advise that with 2025 marking a turning point where both criminal investigations and administrative regulations on virtual assets are being simultaneously strengthened, industry players must adopt a management strategy focused on "pre-check" rather than "post-response."
2025-12-05 Tokenpost -
Media Coverage
Decent Law Firm Conducts 6th Compliance and Ethics Training on Virtual Assets for Crypto Media Group
Decent Law Firm announced that on October 21, 2025, it delivered the 6th Virtual Asset Compliance and Ethics Training program for the executives and employees of Crypto Media Group Co., Ltd. This training was designed as a practical program aimed at preventing legal risks in the virtual asset industry while strengthening corporate ethical decision-making frameworks and internal control systems. The session was held offline at Decent Law Firm’s headquarters, with key operational staff from Crypto Media Group in attendance. Discussions focused on legal standards and response strategies that can be applied immediately in day-to-day operations. The training covered major legal and ethical issues frequently encountered in the virtual asset sector, including legal risks relating to cryptocurrency transactions, duties of good faith and contractual performance, protection of internal information and conflict-of-interest management, and legal standards for determining fraudulent practices. It also incorporated key provisions of the Virtual Asset User Protection Act, the Capital Markets Act, and the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”), along with an overview of the principal issues under the proposed Digital Asset Framework Act currently pending before the National Assembly. Based on these laws, the session provided concrete operational guidelines and internal control measures for running a compliant and transparent virtual-asset business. Mr. Seonghwan Kim, CEO of Crypto Media Group, stated, “As the virtual asset industry continues to integrate into the regulatory mainstream, enhancing compliance awareness among our employees and partners is essential to maintaining corporate trust. We plan to strengthen our risk-management systems and conduct regular training in cooperation with Decent Law Firm.” Mr. Hyunsoo Jin, Managing Partner of Decent Law Firm, added, “The virtual asset industry remains in a transitional period where legal standards are still developing. During such times, it becomes even more important for businesses to establish their own compliance principles and operate responsibly within clear boundaries.” Decent Law Firm provides specialized advisory and dispute-resolution services to domestic and global exchanges, Web3 projects, and investment firms across virtual assets, blockchain, and cross-border transactions. Building on this training program, the firm plans to further expand its regular compliance-education offerings to promote a culture of voluntary compliance and responsible governance in the virtual asset industry.
2025-10-27 Financial News(파이낸셜뉴스) -
Media Coverage
Decent Law Firm Unveils New Slogan and Logo, Embarking on a Customer-Centric Brand Transformation
Decent Law Firm announced on July 3 that it has launched a new slogan and logo as part of a comprehensive rebranding initiative. This transformation reflects the firm's commitment to strengthening its legal service framework for the digital era, building on three years of accumulated expertise and robust growth. New Slogan: “Where Your Answers Await, Decent” The newly unveiled slogan, “Where Your Answers Await, Decent,” encapsulates the firm’s philosophy of being the first legal partner that comes to mind when clients need support the most. In addition, Decent introduced a new brand message: “Different, Add, Knock.” This message highlights the firm’s approach of asking unique questions, delivering value beyond legal solutions, and persistently seeking answers—even when faced with seemingly insurmountable challenges. Enhanced Logo for Greater Trust and Professionalism The newly designed logo harmoniously integrates the English “DECENT” and the Korean name, emphasizing both professionalism and trust. The design has evolved from its previous sleek style to a more stable and traditional look, ensuring high readability and visibility across digital platforms. Leadership Comments on the Rebranding Managing Partner Hyunsoo Jin stated, “Since our founding, Decent has experienced explosive growth year after year. This rebranding marks a pivotal moment to refine our internal systems and elevate our external communications. We will continue to evolve as a flexible and trusted brand across diverse legal fields.” Managing Partner Pureun Hong added, “A brand ultimately embodies philosophy and attitude. Decent will further clarify its direction as a law firm that listens attentively to clients’ questions and strives to find answers together.” Expanding Global and Digital Legal Services Decent Law Firm has recently expanded its advisory scope to cover international matters in the United States, Japan, China, Singapore, the Philippines, and more—strengthening its global legal services for corporate overseas expansion, international contracts, and dispute resolution. Notably, the firm is building a distinct competitive edge by offering comprehensive and strategic legal counsel tailored to the rapidly evolving legal landscape of digital industries, including AI, ICT, blockchain and digital assets, content/media, and fintech.
2025-07-03 News1(뉴스원) -
Media Coverage
Voice Phishing Scams Using Wallet Addresses: Rising Threats in the Crypto Space
Criminals are increasingly exploiting cryptocurrencies in voice phishing scams, coercing victims into directly transferring Bitcoin (BTC), Tether (USDT), and other digital assets. Unlike traditional bank transfer schemes, these scams lead victims to withdraw from crypto exchanges or transfer between wallets—making funds significantly harder to trace. In many cases, perpetrators contact victims under the guise of “debt recovery,” “investment refunds,” or “international remittance processing,” and then request crypto transfers. Once received, the assets are quickly dispersed through multiple transactions, complicating any attempts at tracking. In some instances, assets sent from domestic exchanges have been moved to overseas wallets within hours or disappeared through mixing services. (omitted) Hyunsoo Jin, Managing Attorney at Decent Law Firm, stated, “Crypto-based voice phishing scams are far more difficult to recover from compared to traditional account-based fraud. Rapid initial response and preservation of digital evidence are crucial. It’s important to secure transaction history, wallet addresses, exchange account data, and phone recordings to support both criminal complaints and civil recovery.” He added, “If the scammers’ wallets or exchanges can be identified, victims may request emergency freezes or pursue international cooperation through investigative agencies. Immediate legal consultation is essential for assessing the situation and pursuing both criminal and civil remedies in parallel.”
2025-04-14 경향게임스
