In response to the recent

speculation frenzy over virtual currency trading and increase in virtual

currency-related crimes, the Korean government announced emergency measures

yesterday, December 13, 2017, the main points of which are summarized below:

opening of virtual currency account (with the bank or the exchange) by minors

and foreigners, which will be enforced in cooperation with the banks

of virtual currencies disguised as travel expenses will be subject to strict

investigation

transactions (holding, purchasing, taking as security or otherwise investing in

virtual currencies) by domestic financial institutions

currency exchanges. Exchanges with frequent customer information leakage or unfair

transactions will be suspended from operation and/or receive fines.

reference to other jurisdictions).

Also, the emergency measures

included the measures announced on September 2 and 31, 2017, e.g., (i) crackdown

on crimes involving virtual currencies, e.g., frauds and illegal collection of

funds, (ii) the prohibition of ICO (Initial Coin Offering), and (iii) other

requirements aimed to increase the security of the exchange and prevent illegal

activities, such as KYC/AML procedure and cryptographic key distribution. For

more information, please see BKL's 9/25 and 9/29 newsletters.

This update is intended as a summary news report only, and not as advice. For legal advice, please inquire with your contact at Bae, Kim & Lee LLC, or the following authors of this bulletin:

Sky YANG

T 82.2.3404.0143

E [email protected]

Jae In LEE

T 82.2.3404.6537

E [email protected]