South Korea’s Supreme Court has unveiled draft amendments that would establish clear, standardized procedures for seizing and liquidating digital assets in civil enforcement cases. The proposal, reported by local news agency Newsis, responds to a growing number of cryptocurrency-related disputes and aims to fill legal gaps around digital asset recovery.
Under the proposed rules, a court-issued seizure order would immediately bar debtors from disposing of affected cryptocurrencies and require them to transfer the assets to a court enforcement officer. The seizure becomes effective upon the officer’s receipt of the assets. The amendments also provide a legal basis for liquidation: courts could issue transfer orders delivering the assets directly to creditors at a court-determined value, or direct enforcement officers to sell the assets. Officers would be permitted to move seized assets into dedicated accounts at virtual asset service providers for sale, entrust the sale to these providers, or even convert the holdings into more liquid cryptocurrencies such as bitcoin before selling. Provisional measures, including preliminary seizures and injunctions, are also detailed to prevent debtors from hiding or transferring assets during ongoing litigation.
The Supreme Court emphasized that the changes are necessary due to the rising number of civil cases involving cryptocurrencies. Public comments will be accepted until August 11, and the revised procedures are expected to take effect in October. If adopted, South Korea would join a growing list of jurisdictions introducing dedicated rules for digital asset enforcement.
