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MoreWhen Does Crypto Trading Violate Korea's Specified Financial Transaction Information Act? Standards and Penalties Explained
Trading virtual assets frequently, or trading large amounts, does not by itself mean that someone has violated Korea's Specified Financial Transaction Information Act (특금법). What matters most is whether a person carried out virtual asset buying, selling, exchanging, transferring, storing, or brokering as a business for other people — and whether that person, as a Virtual Asset Service Provider (VASP), failed to file the required report with Korea's Financial Intelligence Unit (FIU). The Supreme Court of Korea has held that whether someone qualifies as a VASP must be judged comprehensively, taking into account the purpose and type of the transactions, their scale and frequency, the period and method of trading, and other relevant circumstances. Table of Contents What Is a Violation of the Specified Financial Transaction Information Act? Which Types of Violations Arise in Virtual Asset Trading? How Is Personal Coin Trading Distinguished From Operating a Virtual Asset Business? Can OTC, P
Unregistered Virtual Asset Service Providers in Korea: Registration Requirements and Penalties
Frequent trading of virtual assets does not, by itself, mean that you are required to register as a Virtual Asset Service Provider (VASP) in Korea. However, if you repeatedly buy, sell, exchange, transfer, broker, arrange, or facilitate virtual asset transactions for others and receive compensation for doing so, you may be considered a VASP subject to registration requirements under Korea’s Act on Reporting and Using Specified Financial Transaction Information (the “Specified Financial Information Act”). 1. What Is an Unregistered Virtual Asset Service Provider in Korea? A person or entity may be treated as an unregistered VASP if it conducts regulated virtual asset activities as a business without completing the required registration with the Korea Financial Intelligence Unit (KoFIU). The Specified Financial Information Act regulates businesses engaged in activities involving virtual assets, including the purchase and sale of virtual assets, exchanges between virtual assets, certain
2026 AML Reform in Korea: 3 Key Anti-Money Laundering Obligations Under the Revised FSCMA
The amended Korean Anti-Money Laundering law is no longer just a compliance issue for banks. It is rapidly becoming a core operational and governance issue for virtual asset businesses, fintech companies, and even certain professional service providers. The revised Act on Reporting and Using Specified Financial Transaction Information (commonly referred to as Korea’s AML law or “Special Financial Transactions Act”) was promulgated on February 19, 2026, and is scheduled to take effect on August 20, 2026. The amendments significantly strengthen AML obligations for Virtual Asset Service Providers (VASPs) and expand the overall compliance framework surrounding crypto-related transactions in Korea. This article outlines the three most important AML changes businesses should understand before the new rules take effect. What Is Korea’s “Special Financial Transactions Act” (특금법)? Korea’s AML framework is governed by the Act on Reporting and Using Specified Financial Transaction Information,
Front-Running in Korean Stocks: Where Does It Become Illegal? (A Complete Guide for Foreign Investors, Listed Company Executives, and Finance Professionals in Korea)
If you've been investing in Korean stocks, or working in Korea's financial industry, you've probably heard the term "front-running" (선행매매) come up more and more lately. It's not just an issue for stock YouTubers or chat-room operators. Listed company executives, fund managers, analysts, and even ordinary retail investors can find themselves caught up in it — whether as victims or, in some cases, unwitting participants. The Financial Supervisory Service (FSS) recently identified illegal activity across five YouTube channels and announced it would refer cases to prosecutors. The message is clear: the era of looking the other way is over. Here's what you need to know. 1. What Is Front-Running, Exactly? Front-running means trading on information that isn't yet public — getting in before everyone else does, and profiting when the news breaks. In the Korean market, it typically shows up in three ways. The first is the stock influencer model. A YouTuber or paid trading-room operator quietly
Pharmaceutical Law Violations in Korea: What Pharma Companies & Distributors Must Review Now
Why You Need to Review Compliance Now Regulatory scrutiny over pharmaceutical rebate practices in Korea is intensifying. What is notable is that enforcement is no longer limited to individual misconduct but is increasingly focused on the overall transaction structure of a company. Authorities are examining how sales, contracts, and financial flows are designed and whether those structures, in substance, incentivize prescriptions or product adoption. Pharmaceutical companies and distributors operating in Korea are subject not only to the Pharmaceutical Affairs Act, but also to the Medical Service Act, national health insurance regulations, and fair trade laws. This layered regulatory framework creates a situation where a single transaction can raise multiple legal issues at once. In this environment, superficial compliance systems or loosely implemented internal controls can become a risk factor rather than a safeguard. If internal processes appear formal but lack substance, they may be
A Legal Guide by a Pseudo-Investment Advisory Lawyer
The Decisive Difference Between Pseudo-Investment Advisory Business and Investment Advisory Business Many operators run paid “signal groups” or trading rooms on platforms such as KakaoTalk or Telegram relying solely on a pseudo-investment advisory business registration. However, in actual legal assessments, the most critical issue is individualization. A pseudo-investment advisory business provides non-personalized, general investment information to an unspecified audience through publications, broadcasts, or online postings. In contrast, an investment advisory business offers customized advice tailored to a specific individual’s investment profile, which requires formal registration with the Financial Services Commission. Following the 2024 amendment to the Capital Markets Act, structures in which operators receive compensation and directly exchange opinions with users online are increasingly likely to be classified as investment advisory services. Accordingly, responding to member qu
