South Korea establishes court rules for crypto seizure and liquidation

South Korea’s National Court Administration has established procedures for the compulsory execution of cryptocurrency, effective Nov. 1. The revised civil execution rules address the legal nature of crypto assets and their trading structure. Previously, there were no specific execution rules for virtual assets due to their lack of physical form or public disclosure mechanisms, leading authorities to rely on existing property rights procedures. A task force was formed in July last year to prepare these execution procedures. The new rules differentiate between cases where a debtor uses a virtual asset service provider, like an exchange, and cases where a debtor holds virtual assets directly in a personal wallet. For assets managed through exchanges, the seizure targets the right to claim the virtual asset transfer. For assets held in personal wallets, the virtual asset itself is subject to compulsory execution. The liquidation process may involve a transfer order, a sale order, or other legitimate methods based on the creditor's application.

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