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Legal Representation for Sex Crime Victims: Reporting Is Not the End
What Does Legal Representation for Sex Crime Victims Mean? Legal representation for sex crime victims refers to a system that allows survivors of sexual offenses to exercise their rights throughout the criminal process through an attorney. Support is available through the court-appointed victim attorney system under relevant statutes Attorneys accompany victims during police and prosecutor investigations, assist in gathering evidence, and support settlement and damages negotiations through the entire process Attorneys protect the victim's procedural rights and interests from unfair pressure or inducement by the offender's defense counsel In this way, legal representation for sex crime victims goes beyond simply accompanying the investigation — it provides substantive legal support that helps victims complete the process without suffering secondary harm. From Reporting to Trial: What Is the Process? Cases handled through victim legal representation generally proceed through the following steps. Filing a report and complaint - Reporting the incident and submitting a criminal complaint to the police Victim interview - Providing statements and evidence with the attorney present Investigation by authorities - Investigation of the offender, forensic examination of evidence, and witness questioning Case referral and indictment decision - After police referral, the prosecutor decides whether to indict or not Trial and claim for a restitution order - Participation in trial, criminal mediation, and, if requirements are met, a restitution order to help restore the victim's losses Since the consistency of initial statements and the preservation of evidence during this process critically affect the outcome of the case, it is essential to receive legal assistance as soon as possible after reporting. A Real Case: Legal Representation for a Sex Crime Victim [Case We Handled] Ms. B, a woman in her twenties, hesitated to report workplace sexual harassment and filed her complaint only after considerable time had passed. Although evidence was scarce by then, with Decent Law Firm's help she systematically organized circumstantial evidence and responded appropriately to secondary-harm-inducing questions during the investigation, ultimately leading to the offender's indictment. As this shows, the outcome of a sex crime victim representation case can vary greatly depending on the initial response and how well the evidence is organized. The Attorney's Role, and Why You Should Work With Decent Sex crime victim representation cases require a professional approach that includes the following. Preventing secondary harm and supporting psychological stability by accompanying the victim during investigations Strengthening the case through evidence collection and assistance with statements Developing follow-up strategies for settlement, damages, and criminal mediation Decent Law Firm has extensive experience handling numerous sex crime victim representation cases, closely analyzing each client's situation and building a systematic support strategy from the initial report through trial and compensation. We stand by clients from beginning to end so that those who are already psychologically vulnerable from the harm they suffered are not hurt again during the process. Sex crime victim representation is a type of case where, as time passes, securing evidence and responding effectively become increasingly difficult. If you have already suffered harm or are considering filing a report, we recommend consulting first with an attorney experienced in sex crime cases rather than deciding on your own. Decent Law Firm is always ready to provide prompt and accurate legal consultation to help you find the best direction for your situation.
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Assault While Intoxicated and Settlement: A Must-Read If You're Facing Criminal Punishment
What Is Assault While Intoxicated? Assault while intoxicated refers to using physical force against another person while under the influence of alcohol. Under Korean law, this can constitute assault (Article 260 of the Criminal Act) or, if an injury results, bodily harm (Article 257). Many people misunderstand one key point here. "I don't remember because I was drunk" — this does not automatically establish diminished capacity. In fact, when violence is committed while intoxicated, the sentence reduction for diminished capacity due to alcohol may be excluded entirely. Article 10(3) of the Criminal Act provides that the provisions on reduced responsibility for a person of unsound mind or diminished capacity do not apply to a person who, foreseeing the risk, voluntarily brought about that mental state. Courts have consistently held that a defendant who could have foreseen the risk of committing a crime such as assault after drinking, yet chose to drink anyway, is not entitled to a sentence reduction for diminished capacity. In short, assault while intoxicated is not merely a matter of being drunk — it is treated as a clear criminal offense, and this must be firmly understood. How Do the Investigation and Trial Process Work? The general process for an assault-while-intoxicated case is as follows. Report and Police Response – Police secure witness statements, CCTV footage, and a medical certificate documenting the injury. Suspect Interview – Investigators examine whether the suspect was intoxicated, the circumstances of the assault, and whether there was intent. Referral to the Prosecution – Depending on the severity, the case may result in a fine, deferred prosecution, summary indictment, or formal indictment. Criminal Mediation or Settlement – Whether a settlement is reached with the victim significantly affects the final disposition. Sentencing – Factors such as whether it is a first offense, the defendant's attitude of remorse, and whether a settlement was reached are reflected in sentencing. What people facing an assault-while-intoxicated allegation need to understand first is that the final outcome can vary greatly depending on how they respond in the early stages. ※ Assault under Article 260 of the Criminal Act is a semi-victim-complaint offense — prosecution cannot proceed against the victim's explicit wishes. Therefore, if the victim states that they do not wish to see the offender punished, prosecution either cannot be initiated or, if already filed, will be dismissed. By contrast, bodily harm under Article 257, which applies when an injury results, is not a semi-victim-complaint offense. Even if the victim and the defendant reach a settlement, this cannot block prosecution — it can only affect the outcome of sentencing. A Real Case We Successfully Handled Mr. A, an office worker in his twenties, got into an argument at a company dinner and ended up pushing a coworker and striking him. The next day, once sober, Mr. A was shocked by his own actions — but by then, the other party had already submitted a medical certificate, and Mr. A had received notice to appear for a police interview. As a first-time offender who had otherwise been a diligent employee, Mr. A came to Decent Law Firm out of fear of gaining a criminal record. From the very beginning of the case, Decent worked with Mr. A to design a response strategy. Prepared Mr. A in advance for the police interview by anticipating likely questions and preparing appropriate answers, preventing him from making statements that could work against him. Promptly reached out to the victim and, through a sincere apology, negotiated an amicable settlement. Submitted a statement of opinion and sentencing materials emphasizing that this was a first offense, that the incident was impulsive, and that Mr. A was deeply remorseful. As a result, despite being an assault-while-intoxicated case, Mr. A received a non-prosecution disposition and resolved the matter without a criminal record. As Mr. A's case shows, even someone who commits assault while intoxicated in a moment of poor judgment can avoid the worst outcome — a criminal record — with the right response from the very start. (This case has been adapted to protect client confidentiality. Actual outcomes may vary depending on the specific facts and evidence of each case.) Why Do You Need a Lawyer's Help From the Early Stages? In assault-while-intoxicated cases, the initial response determines the outcome. A defense lawyer plays the following roles: Pursuing a prompt and appropriate settlement with the victim Making an accurate legal determination on whether diminished capacity applies, and responding accordingly Building a leniency strategy through materials such as first-offense status, letters of remorse, and sentencing materials Preventing disadvantage caused by unnecessary statements At Decent Law Firm, our criminal defense attorneys handle numerous assault-while-intoxicated cases directly, designing the optimal response strategy tailored to each client's situation. Our goal goes beyond simply avoiding punishment — we aim to help our clients return to their everyday lives. Why You Should Get Legal Advice Right Now If you are facing an upcoming investigation for assault while intoxicated, or if an investigation is already underway, your options narrow as time passes. Get an accurate assessment of your situation from Decent Law Firm's criminal defense attorneys, and let us help you chart a better path forward together. Don't struggle with this alone. Take the first, most reliable step by consulting with us today.
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Crypto Referral Liability in Korea: Why the FSC Issued a Warning on Unregistered Virtual Asset Service Providers
Sharing overseas crypto exchange referral links on YouTube, Telegram, or open chat rooms may seem like simple advertising. However, in its press release dated June 24, 2026, the Financial Services Commission (FSC) stated that referral or recommendation-link activities may be viewed as assisting unregistered virtual asset business operations. The FSC also noted that referrers themselves may be subject to criminal liability depending on the circumstances. If you operate or participate in crypto referral marketing, private stablecoin exchange, or promotion of overseas crypto exchanges targeting Korean users, it is important to review whether your activities may raise issues under Korea’s Specified Financial Information Act. Key Points from the FSC Warning The FSC explained that, under the Specified Financial Information Act, any entity conducting virtual asset business targeting Korean users must be reported to the Korea Financial Intelligence Unit (KoFIU), unless it is one of the 28 registered virtual asset service providers. If an entity conducts virtual asset trading, exchange, transfer, custody, brokerage, or intermediary services as a business without proper reporting, this may constitute a violation of the Specified Financial Information Act. Unregistered virtual asset business activities may be punishable by imprisonment of up to 5 years or a fine of up to KRW 50 million. The FSC also noted that, after the amended Specified Financial Information Act takes effect in August 2026, those involved in unregistered illegal business activities may face additional restrictions. These may include restrictions on becoming a major shareholder of a domestic virtual asset service provider or serving as a representative or executive officer for a certain period. In this sense, the FSC press release is not merely a general user warning. It can also be understood as a signal that Korean authorities may strengthen investigations and sanctions against unregistered virtual asset service providers and those who assist their business activities. Three Types of Illegal Activity Highlighted by the FSC The FSC identified three major types of illegal virtual asset business activities recently observed in Korea. First, overseas exchanges conducting business in Korea without reporting. Even if an exchange is based overseas, Korea’s Specified Financial Information Act may apply if the exchange conducts business targeting Korean users. Factors such as Korean-language websites, KRW payment support, Korean user acquisition events, and domestic marketing activities may be considered together. Second, private stablecoin exchange businesses. Private exchange operators who buy, sell, or exchange stablecoins such as USDT for KRW may also raise legal issues. These services may target foreign students, tourists, foreign residents in Korea, or users who wish to avoid identity exposure. Even if the operator claims that the activity was merely a private exchange, it may still be viewed as an unregistered virtual asset business if repetition, fees, customer solicitation, and business structure are confirmed. Third, SNS-based referral promotion. This refers to cases where a person receives commissions from an overseas virtual asset service provider and promotes that exchange through YouTube, Telegram, open chat rooms, or similar channels. In particular, if the promotion is combined with referral links, invitation codes, fee paybacks, VIP chat rooms, or user-management activities, it may go beyond simple advertising and be viewed as user solicitation or assistance to unregistered business operations. Why Crypto Referral Marketing May Become a Criminal Issue Crypto referral programs are commonly operated in the following structure. 1. Distribution of overseas exchange referral links or invitation codes 2. Receipt of commissions based on referred users’ trading volume 3. Guidance on how to use the exchange through Telegram or open chat rooms 4. Promotion based on events, profit claims, fee discounts, or other incentives 5. Repeated promotion targeting Korean users The legal issue is whether this structure is merely advertising or whether it assists an unregistered virtual asset service provider’s business in Korea. In its press release, the FSC specifically warned against participating in referral or recommendation-link solicitation activities and stated that referrers may also be subject to criminal liability. Therefore, YouTubers, influencers, investment chat room operators, Telegram channel operators, and open chat room administrators may be investigated even if they did not directly operate the exchange. Investigators may review how the promotion was conducted, how referral fees were paid, whether there was a contractual relationship with the exchange, and how Korean users were recruited. Can Private Exchange or OTC Transactions Also Lead to Investigation? The same issue may arise in private exchange or OTC transactions. A person may believe that they were simply buying or selling crypto. However, the following circumstances may raise issues under the Specified Financial Information Act. 1. Repeated transactions with an unspecified number of users 2. Receipt of fees or exchange-rate margins for each transaction 3. Customer solicitation through Telegram, KakaoTalk, or SNS 4. Continuous exchange between KRW and stablecoins such as USDT 5. Brokerage or intermediary activity for the convenience of others The Supreme Court of Korea has also held that, unlike an ordinary exchange user, a person may be considered a virtual asset service provider if they continuously and repeatedly conduct virtual asset transactions for the benefit of an unspecified number of customers or users and receive compensation for doing so. The key issue is whether the activity was simple holding or investment, or whether it can be viewed as repeated, compensated virtual asset transactions conducted as a business. Why Ordinary Users Should Not Simply Assume They Are Safe Using an unregistered exchange or private exchange service does not automatically make a user a suspect under the Specified Financial Information Act. However, the FSC has warned that users of illegal virtual asset operators may face unexpected disadvantages. For example, the user’s funds may become mixed with criminal funds, or the user may become subject to investigation during the process of verifying counterparties and the source of funds. The following situations may make it difficult to characterize the person as a mere user. 1. Sharing referral links with acquaintances and receiving rewards 2. Repeatedly encouraging others to use an unregistered exchange 3. Introducing private exchange transactions and receiving commissions 4. Dealing with funds suspected to be connected to phishing, narcotics, fraud, or other crimes 5. Allowing one’s bank account to be used as a deposit or withdrawal channel for multiple people In such cases, authorities may review not only potential violations of the Specified Financial Information Act, but also issues under the Electronic Financial Transactions Act, the Criminal Proceeds Concealment Act, fraud aiding and abetting, or other money-laundering-related allegations. If You Have Already Been Contacted by Investigators If you have been contacted by the police, KoFIU, or another investigative authority, the first step is to accurately identify your role. The defense strategy will differ depending on whether you were a mere user, promoter, broker, intermediary, or private exchange operator. At the early stage of investigation, it is important to organize the following materials. · How you joined or used the exchange · Referral link or referral code usage history · Commission or fee settlement records · Telegram, KakaoTalk, or open chat room messages · Virtual asset deposit and withdrawal records · KRW bank account transaction records · Contracts or settlement records with overseas exchanges or advertisers · Whether you recruited Korean users The important point is not simply to claim that you were only a user. Before making a statement, it is necessary to analyze how investigators may view the transaction structure, revenue structure, promotion method, user recruitment, repetition, compensation, and awareness of illegality. How Decent Law Firm Can Assist Decent Law Firm has reviewed a wide range of matters involving virtual asset service provider reporting, violations of the Specified Financial Information Act, crypto referral marketing, OTC and P2P transactions, stablecoin exchange, and criminal cases involving overseas exchanges. Virtual asset investigations are not limited to crypto transaction records. Investigative authorities may review Telegram messages, referral-fee settlement structures, relationships with exchanges, KRW bank account flows, wallet address movements, advertising phrases, and user recruitment methods. Before attending an investigative interview, the following issues should be carefully reviewed. 1. Whether the activity constitutes a virtual asset business under the Specified Financial Information Act 2. Whether the alleged unregistered business activity had continuity, repetition, and compensation 3. Whether referral promotion was simple advertising or user solicitation 4. Whether private exchange activity was personal trading or business operation 5. Whether the matter may expand into money laundering or criminal proceeds allegations 6. What should and should not be stated during a police interview If you have been contacted by investigators in relation to crypto referrals, private exchange, or use of an unregistered overseas exchange, legal review before your initial statement is essential. Decent Law Firm’s Virtual Asset Practice Group analyzes the transaction structure and investigation issues together to provide a response strategy tailored to each client’s situation. Key Takeaways The FSC press release dated June 24, 2026 is not merely a general warning about unregistered virtual asset service providers. It clearly indicates that overseas exchanges targeting Korean users, private stablecoin exchange operators, and SNS-based crypto referral promoters may all be subject to investigation under the Specified Financial Information Act.In particular, because the FSC officially mentioned that referral participants may also face criminal liability, YouTubers, influencers, channel operators, and investment chat room operators should immediately review their existing promotion structures. After being contacted by investigators, simply saying that you did not know may not be enough. The first step should be to legally assess whether your conduct may be viewed as business operation, brokerage, intermediation, or solicitation under Korean law. Source: Financial Services Commission, Press Release on Caution Against Using and Trading with Illegal Virtual Asset Operators, June 24, 2026. This content is provided for general informational purposes only and does not constitute legal advice for any specific case.
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Overseas Futures Trading Lawyer: What You Need to Know Before an Investigation Begins
Why Domestic Promotion of Overseas Futures and FX Margin Trading Can Be Problematic Trading overseas futures or FX margin products is not, in itself, completely prohibited under Korean law. The issue arises when individuals or entities provide brokerage-related services or facilitate such trading activities within Korea without the required authorization. Under the Financial Investment Services and Capital Markets Act ("Capital Markets Act"), any person engaging in the business of trading, brokerage, or intermediation of financial investment products must obtain authorization from the Financial Services Commission. Overseas futures and FX margin products are classified as derivatives under the Capital Markets Act. Depending on the manner and extent of a person's involvement, different offenses and penalties may apply. For example, legal issues may differ depending on whether a person: Assists clients in opening accounts on overseas platforms such as MT4 or MT5; Operates a trading signal or "copy-trading" community; Receives and manages client funds directly. Case Study: “I Only Helped Connect People to the Platform” Mr. A had traded overseas futures for several years and built a track record of profitable trading. As his results became known among acquaintances, several people expressed interest in participating. Mr. A began assisting them with MT5 account registration and deposit procedures. He later operated a KakaoTalk group chat and Telegram channel where he provided real-time trading signals and received monthly subscription fees from members. Mr. A believed that he was merely providing information because each customer opened and managed their own account. His position was simple: "The investment decisions were made by the customers themselves." However, he eventually received notice that he had become the subject of a Financial Supervisory Service (FSS) investigation, which later developed into a criminal investigation. Investigators concluded that Mr. A's conduct went beyond merely providing market information. They focused on the fact that he continuously communicated with members in real time and repeatedly instructed them on entry and exit points for trades in exchange for compensation. When evidence emerged suggesting direct involvement in certain members' trading accounts, the allegations became significantly more serious. Why “Providing Information Only” Can Still Lead to Violations of the Capital Markets Act This is where many people misunderstand the legal risks. As involvement becomes more substantial, the potential offenses become more serious. Investigators typically focus on factors such as the following: Commercial Nature of the Activity Did the operator repeatedly collect fees while promoting services to the general public? → Potential issue: Violation of regulations governing quasi-investment advisory businesses Interactive Communication Did the operator provide individualized trading recommendations through open chat rooms, Telegram channels, or similar platforms? → Potential issue: Unregistered investment advisory business Automated Trading Execution Did the operator use API integrations or copy-trading systems that automatically replicated trades for clients? → Potential issue: Operating an investment discretionary management business without registration Involvement in Client Funds Did client funds pass through the operator's accounts, or did the operator directly participate in the trading process? → Potential issue: Unauthorized investment brokerage business Since August 2024, Korean regulations have prohibited quasi-investment advisory businesses from operating interactive communication channels with subscribers. This is one reason why the argument that someone was "only providing information" may no longer be persuasive from the outset. Additional Charges Such as Illegal Fundraising and Fraud May Also Apply If investors were recruited using representations such as: "Guaranteed monthly returns" "No risk of principal loss" "Guaranteed profits" additional criminal liability may arise under the Act on the Regulation of Conducting Fund-Raising Business Without Permission. This law prohibits raising funds from an unspecified number of individuals while promising repayment of principal, interest, or other guaranteed returns without proper authorization. Where an operator attracts investors through a trading signal service or investment community while emphasizing guaranteed profits, authorities may pursue multiple charges simultaneously, including: Violations of the Capital Markets Act; Violations of laws regulating unauthorized fundraising activities; Fraud. For example, in 2025, the Gyeonggi Nambu Provincial Police Agency arrested 28 individuals accused of raising approximately KRW 140 billion from more than 2,400 investors by claiming they would generate profits through FX margin trading. Authorities reportedly applied charges including fraud, illegal fundraising, and violations of the Door-to-Door Sales Act. This illustrates why overseas futures and FX margin trading cases rarely involve only a single allegation. What to Review If You Have Been Contacted by Investigators If any of the following situations apply to you, legal review before questioning may be advisable: ▪ Providing paid overseas futures or FX margin trading signals through Telegram, KakaoTalk, or similar platforms; ▪ Assisting clients with MT4, MT5, or similar platform account openings while receiving commissions or referral fees; ▪ Operating copy-trading services using clients' API keys or automated trading systems. Depending on the specific facts, authorities may allege: Violations relating to quasi-investment advisory businesses; Unregistered investment advisory activities; Unregistered investment discretionary management services; Unauthorized investment brokerage; Illegal fundraising activities; Fraud. The direction of statements made during the early stages of an investigation can significantly influence the development of the case. Understanding the legal structure of the allegations before attending an interview is therefore critical. The Digital Asset Practice Team at Decent Law Firm regularly advises individuals and businesses involved in investigations concerning unauthorized overseas futures and FX margin trading activities. If you have been contacted by investigators or have already been scheduled for questioning, it is important to understand the nature of the allegations and the overall structure of the case before appearing for an interview.
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False Naver Blog Posts Targeting Your Business in Korea: How to Request Removal
When Online Defamation Affects Your Business in Korea In South Korea, Naver remains one of the most influential online platforms for search, blogs, and reputation management. For businesses operating in Korea, what appears on Naver can directly affect customer trust, business inquiries, and brand credibility. In recent years, some businesses have discovered Naver blog posts that mention their company or brand name together with words such as “scam,” “fraud,” or “victim warning.” These posts may appear professional and persuasive, even when the underlying facts are inaccurate, misleading, or unrelated to the business itself. For foreign-owned companies or international businesses operating in Korea, this type of reputational damage can be especially difficult to detect and respond to. The content may be written in Korean, indexed on Naver, and viewed as credible by local customers before the company becomes aware of it. Under the Act on Promotion of Information and Communications Network Utilization and Information Protection (the “Network Act”), a business whose reputation or other rights have been infringed online may request deletion of the content or temporary blocking of access to the content. Applicable Law ▪️Article 44-2 of the Network Act: Deletion Requests and Temporary Measures Article 44-2(1) of the Network Act provides that a person whose rights, including privacy or reputation, have been infringed through information distributed via an information and communications network may request the relevant service provider to delete the information or publish a rebuttal. Under Article 44-2(2), once such a request is received, the service provider must take necessary measures, such as deletion or temporary blocking, without delay and notify both the requester and the person who posted the content. Where it is difficult to determine whether a rights infringement has occurred, or where a dispute between the parties is expected, Article 44-2(4) allows the service provider to temporarily block access to the content. The duration of such temporary measures may not exceed 30 days. ▪️Criminal Liability for Online Defamation If an online post contains false statements of fact that damage another person’s or company’s reputation, Article 70(2) of the Network Act may apply. The statutory penalty is imprisonment for up to seven years, disqualification for up to ten years, or a fine of up to KRW 50 million. Even if the statements are true, Article 70(1) may still apply if the post was made with intent to defame. In that case, the statutory penalty is imprisonment for up to three years or a fine of up to KRW 30 million. Category Legal Basis Possible Penalty Defamation by false statements of fact Network Act, Article 70(2) Up to 7 years’ imprisonment or KRW 50 million fine Defamation by true statements of fact Network Act, Article 70(1) Up to 3 years’ imprisonment or KRW 30 million fine Civil damages Civil Act, Article 750 Compensation for financial and reputational harm Criminal liability depends on the specific content, context, and intent behind the post. However, a business may still pursue platform-level removal or temporary blocking even where the criminal threshold is not yet clear. Key Legal Issues ▪️Scope of Defamation Under Article 44-2 The standard for requesting deletion or temporary blocking under Article 44-2 is broader than the standard for criminal defamation under Article 70 of the Network Act or Article 307 of the Criminal Act. In practice, the key issue is whether the online post infringes the company’s rights, including its reputation. It is not always necessary to prove criminal intent at the initial platform reporting stage. For example, if a Naver blog post places a company’s brand name next to terms such as “scam” or “fraud,” while the actual content concerns an unrelated impersonator or third party, the overall impression created for ordinary readers may still be misleading. In some cases, this may support a removal or temporary blocking request. Evidence of reputational harm is also important. Businesses should preserve records showing the impact of the post, such as customer complaints, cancelled inquiries, KakaoTalk messages, emails, screenshots, call logs, and changes in online search results. ▪️What Happens If the Poster Files an Objection If the person who posted the content files an objection, the temporary blocking may remain in effect for 30 days from the date the objection is received. After that period, the post may be restored. In that situation, the affected business may consider filing a defamation mediation request with the Korea Communications Standards Commission’s Internet Harm Relief Center. If mediation is successful, the settlement may have an effect similar to a civil settlement agreement. The Limits of Platform Reporting Alone Filing a removal request through Naver’s Rights Protection Center is an important first step, but it may not fully resolve the problem. If the poster files an objection, the content may be restored. If similar posts are uploaded again under different accounts or URLs, each post must usually be addressed separately. Where harmful posts are being published repeatedly or systematically, platform reporting alone may not be enough. In such cases, a formal letter of demand issued in the name of a Korean law firm, together with potential criminal complaints or civil damages claims, may be more effective. How Decent Law Firm Can Assist Responding to false or misleading online content in Korea requires more than simply submitting a platform report. Businesses must consider the wording of the removal request, the legal basis for rights infringement, the preservation of evidence, and the possibility of further civil or criminal action. Decent Law Firm assists businesses with each stage of this process, including removal requests, formal letters of demand, Korea Communications Standards Commission proceedings, criminal complaints, and civil damages claims where appropriate. If you have identified Naver blog posts or other online content that may be harming your business in Korea, please share the relevant URLs and a brief explanation of the impact. We will review the matter and advise on the most appropriate course of action. ※ This content is provided for general informational purposes only and does not constitute legal advice in relation to any specific matter.
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Is Crypto Referral Legal? Why Financial Authority Press Releases Are Not Enough
Following a recent press release by the Financial Services Commission (FSC), inquiries regarding the legality of crypto referral programs have increased significantly. Many businesses that use exchange referral codes for marketing, investment advisory services, or community operations are now concerned about potential violations of the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”). However, the legality of crypto referral programs cannot be determined solely based on an FSC press release. In practice, legal assessments must take into account the statutory provisions of the AML Act, relevant court decisions, and investigative standards applied by law enforcement authorities. The Meaning and Limitations of the FSC Press Release In its press release, the FSC suggested that certain referral structures could constitute brokerage or intermediary activities involving virtual asset exchanges. It is important to note, however, that this position reflects an administrative interpretation, not a binding judicial ruling or settled legal doctrine. When legal liability is at issue, courts ultimately determine—on a case-by-case basis—whether a specific referral structure satisfies the statutory elements of a regulated virtual asset service provider under the AML Act. Accordingly, it is legally inappropriate to conclude that all referral programs are unlawful based solely on regulatory commentary. The Core Legal Issue Under the AML Act Article 7 of the AML Act imposes reporting obligations on virtual asset service providers. The key question is whether a referral program goes beyond simple advertising or promotion and instead constitutes the business of brokering or intermediating the purchase, sale, or exchange of virtual assets. In making this determination, authorities focus not on the mere use of referral codes, but on substantive factors such as whether the operator intervenes in transaction structures, influences investment decisions, controls the flow of funds, or effectively forces users to use a specific exchange. Absent these elements, referral activities are generally viewed as marketing rather than brokerage. Guidance from Court Decisions and Investigative Practice Court rulings and multiple non-indictment decisions indicate a consistent approach: referral programs are often characterized as marketing arrangements provided by exchanges, carried out based on users’ voluntary choices. Where the operator does not execute trades, handle customer funds, or mandate the use of a specific exchange, it is difficult to classify such activities as regulated virtual asset services. In practice, investigative authorities tend to focus less on the existence of a referral program itself and more on whether it is combined with fraudulent conduct, unregistered business operations, or substantive involvement in investment decisions. Key Considerations for Crypto Referral Businesses That said, not all referral structures are risk-free. Legal concerns may arise where a business repeatedly promotes only a single exchange, excludes alternative options, or combines referral activities with investment guidance that materially affects users’ decisions. In such cases, the activity may be viewed as de facto brokerage or intermediation. Ultimately, the legality of a crypto referral program depends not on its label, but on whether the overall business structure can be legally justified under the AML Act. Businesses that currently operate referral programs—or are considering implementing them—should carefully assess their structure before regulatory or investigative issues arise. Decent Law Firm’s Digital Asset Team provides legal opinions on the compliance of crypto referral structures, evaluates AML Act risks, and assists clients in preparing for potential regulatory or investigative scrutiny. Crypto referrals are not simply a question of “legal or illegal,” but whether the structure can be clearly explained and defended under the law. If you require a legal review of your crypto referral business model, consulting experienced legal professionals at an early stage can be a critical step in risk management.
