Can a token created without virtual asset advisory later become subject to regulation?

If a token is issued without virtual asset advisory, an error in determining whether it constitutes a security may give rise to a violation of the Financial Investment Services and Capital Markets Act.

In virtual asset advisory, the key is to review in advance whether the token is a digital asset or a financial investment product that constitutes an investment contract security.

First, this is the case where the token structure includes an element of expected profit.

If the structure includes the possibility that the token's value will rise or that economic benefits will arise depending on business performance, it is highly likely to be judged an investment contract security.

In this case, public offering regulations and securities registration obligations may arise, and there is also the possibility of becoming subject to sanctions for an unauthorized public offering.

Second, the method of soliciting investment.

When investors are attracted through a white paper, a website, social media, and the like, this may be interpreted not as simple project information but as a solicitation of investment.

In this case, it may become an issue as an illegal solicitation of investment, and a risk of violating the Financial Investment Services and Capital Markets Act may arise.

Third, the risk of subsequent disputes.

If an investor suffers a loss and the contents of the white paper or the promotional wording are interpreted as an inducement to invest or as a deceptive element, this may lead to civil and criminal liability.

For these reasons, the process involves examining the legal nature of the token, its distribution structure, and its investment inducement elements in advance and supplementing the structure.

If issuance proceeds without going through this, greater costs and risks may arise later in responding to regulation or revising the structure.

Therefore, virtual asset advisory is not optional but an essential procedure for controlling legal risk at the early stage, and it is important to review the possibility of regulatory application in advance through virtual asset advisory.