South Korea Compliance
Introduction
ChainGuard operates within South Korea as a security + identity layer that provides non-custodial Web3 security infrastructure. This page explains how ChainGuard complies with South Korea regulatory requirements.
What ChainGuard Is NOT
ChainGuard does NOT:
- Custody funds
- Store private keys
- Transmit virtual assets
- Execute transactions
- Mediate payments
- Act as an exchange
- Act as a broker
- Fall under custodial wallet rules
- Qualify as a money transmitter
- Process fiat payments
- Take control of user funds
This protects ChainGuard from being misclassified under South Korea regulatory regimes.
Applicable Regulations
| Regulation | Applies? | Explanation | Details |
|---|---|---|---|
| Virtual Asset User Protection Act | ⚠ Partial | Does NOT apply as custodial VASP | We do NOT custody virtual assets, store private keys, or operate as a virtual asset service provider with custody (see "What ChainGuard Is NOT" above). Our non-custodial vaults and identity services fall outside Virtual Asset User Protection Act custodial VASP definitions. However, we may assist VASPs with compliance tools. |
| FIU Reporting Requirements | ✔ | Suspicious transaction reporting | We implement FIU-compatible controls including suspicious transaction reporting and regulatory reporting. See VAT & AML. |
| PIPA | ✔ | Personal information protection compliance | We implement PIPA-compliant measures including purpose specification and limitation, consent management, data security measures, data breach notification, and data subject rights. See Data Protection & Privacy. |
| AML/CFT Regulations | ✔ | Customer due diligence and monitoring | We implement AML/CFT-compatible controls including customer identification, transaction monitoring, and suspicious activity reporting. See VAT & AML. |
Regulatory Position
ChainGuard's non-custodial architecture means:
- FIU Registration: Evaluating virtual asset service provider registration requirements
- PIPA Compliance: Full compliance with South Korea data protection laws
- AML/CFT Obligations: Customer due diligence and transaction monitoring
- User Protection: Compliance with Virtual Asset User Protection Act requirements
Compliance Framework
FIU Requirements
- Virtual asset service provider classification
- Registration requirements (if applicable)
- Suspicious transaction reporting
- Regulatory reporting
PIPA Compliance
- Purpose specification and limitation
- Consent management
- Data security measures
- Data breach notification
- Data subject rights
AML/CFT Compliance
- Customer identification and verification
- Enhanced due diligence for high-risk customers
- Suspicious transaction reporting
- Record-keeping requirements
Ongoing Compliance
We continuously monitor:
- FIU regulatory guidance
- Personal Information Protection Commission updates
- Virtual Asset User Protection Act developments
- Industry best practices
Contact
For questions about ChainGuard's South Korea compliance posture, please contact our compliance team.
