[EDAILY] Unfair Trading Can Happen Unknowingly... Risk Management Needed Until Precedents Are Established

Lee & Ko’s Virtual Asset Regulatory and Investigation Response Team attorneys Yoon (Jay) Jongsoo, Kim Hyongkun, and Kwon Taekyoung were interviewed by EDaily on October 24, 2024. Attorney Kim stated, "As the Virtual Asset User Protection Act is newly implemented, there are many unclear aspects regarding its interpretation and scope. Until relevant precedents are established, it would be safer to conduct transactions based on legal experts' advice."

Attorney Kwon, formerly with the Financial Supervisory Service (FSS), mentioned, "The FSS has now acquired real-time analysis capabilities, and for virtual assets with low trading volumes, large-volume transactions can temporarily affect price movements." He added, "As a result, investors might unknowingly face investigation for unfair trading, with the risk of criminal penalties if price manipulation intent is established."

Attorney Yoon identified corporate account authorization as a key immediate concern in the virtual asset space, stating that "There are many voices from the field expressing concerns about potential breach of trust issues when individuals sell virtual assets owned by corporations."