Overseas Exchange Affiliate Links Alone May Be Considered 'Virtual Asset Business Operator'... FSC Expands Interpretation

Minseung Kang

Summary

The financial authorities stated that earning revenue by sharing affiliate links of overseas virtual asset exchanges may be considered as the business of a virtual asset business operator.
This implies that YouTubers or community operators may be subject to reporting obligations under the Virtual Asset User Protection Act.
In particular, repetitive affiliate marketing can be interpreted as brokerage or mediation activity, and there is a possibility of being subject to regulation as a virtual asset business operator.

The financial authorities have issued an interpretation that repeatedly sharing affiliate links of overseas virtual asset (cryptocurrency) exchanges to earn revenue may be considered as the business of a 'virtual asset business operator'. As a result, there is a possibility that YouTubers or community operators may also be subject to reporting obligations.

According to the industry on the 15th, the Financial Services Commission (FSC) announced through the 'Financial Regulation and Legal Interpretation Portal' on the 9th that if the act of introducing overseas virtual asset exchanges to an unspecified number of people is judged as 'business', the actor may be considered a virtual asset business operator under the Virtual Asset User Protection Act (Virtual Asset Act).

In particular, if affiliate marketing for profit exhibits a certain repetitiveness, it can be interpreted as 'brokerage or mediation activity', and consequently, it may be included in the regulatory scope as a virtual asset business operator.

Previously, the FSC stated that the act of connecting to a mobile web screen through an affiliate exchange, or enabling transactions without separate customer verification procedures and receiving fees, could also be regarded as 'de facto brokerage or convenience provision activity'. This interpretation effectively extends these judgment criteria to marketing cases targeting overseas exchanges.

As a result, YouTubers and community operators who distribute links through affiliate programs of overseas exchanges and earn revenue may be subject to reporting obligations if such activities are conducted continuously and repeatedly.