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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