Recent Developments

In September 2024, Lee & Ko successfully assisted DSRV and BDACS in obtaining their Virtual Asset Service Provider (VASP) registration with Korean financial authorities.

These approvals mark a significant milestone, being the first granted in approximately a year since August 2023. Among roughly 20 companies that submitted VASP registration applications through September 2024, only these two companies, both represented by Lee & Ko, received regulatory approval.

As a virtual asset validation service provider, DSRV partnered with Lee & Ko from the initial stages of preparation. Lee & Ko team provided comprehensive guidance on the scope of ISMS certification and virtual asset business activities, while efficiently managing regulatory inquiries throughout the process.

For BDACS, a virtual asset custody service provider, Lee & Ko team developed a strategic approach that emphasized the company’s unique strengths in the market. Lee & Ko worked closely with the client to optimize their ISMS certification scope and business framework to meet regulatory requirements.

These successful registrations are especially noteworthy given the increasingly stringent regulatory environment for virtual asset service providers, including recent platform-related incidents that have led to heightened scrutiny. Despite the regulatory authorities’ conservative stance and extended processing times, Lee & Ko leveraged its extensive expertise across financial regulations, corporate law, foreign exchange, taxation, and virtual assets to secure these approvals.

On December 7, 2022, the Seoul Central District Court has dismissed the injunction application filed by Wemade Co., Ltd. (Wemade), the issuer of the cryptocurrency Wemix (WEMIX), against four virtual asset exchanges under the Digital Asset Exchange Association, including Upbit, Bithumb, Coinone, and Korbit, regarding the suspension of Wemix trading support, delisting.

In the present case, Wemade argued that the four virtual asset exchanges had arbitrarily decided to suspend trading support for WEMIX without any valid reasons, claiming that it was an abuse of discretionary power and constituted an unlawful concerted action prohibited by the Fair Trade Act, among other arguments.

Lee & Ko, representing three of the four virtual asset exchanges, including Upbit, Korbit, and Coinone, successfully refuted these claims and led to a victory in court. They particularly emphasized the legitimacy of the reasons for suspending trading support, citing investor protection and the adherence to proper internal procedures within the virtual asset exchanges.

Lee & Ko’s notable expertise in cryptocurrency-related cases, including our previous victory in the AnimalGo and Pica Project’s injunction against the suspension of trading support, demonstrates our outstanding capabilities in the virtual asset legal market. The success in this case further showcases Lee & Ko’s leading position in the field.