South Korea puts crypto exchanges on a seven-day clock under new seizure rules
South Korea is close to finalizing new rules for seizing crypto in civil debt cases, with public comments due Aug. 11 and a possible Oct. 1 start. The Supreme Court proposal would create a standard process for freezing, identifying, and liquidating debtors’ virtual assets. Exchanges and other crypto service providers could be required to respond within seven days to court orders, including disclosing whether they hold a debtor’s assets, the type and amount, and any competing claims or prior seizures. For custody-held crypto, courts could attach the debtor’s right to the assets first, then freeze and liquidate them through the provider or enforcement officers. Directly self-custodied crypto remains harder to seize because control depends on private keys. The rules would apply to cases already in progress and extend South Korea’s broader push to regulate crypto as a mainstream financial asset.
