South Korea's Supreme Court Plans to Introduce Cryptocurrency Seizure and Disposal Procedure, Expected to Be Officially Implemented in October

BlockBeats News, July 6th. The Supreme Court of Korea proposed a draft revision of the civil execution rules to establish a seizure, seizure, and liquidation procedure for cryptocurrency, providing a clear legal basis for the court's execution of civil judgments involving cryptocurrency.

According to the draft, once the court issues a seizure order, the debtor will be immediately prohibited from disposing of the relevant cryptocurrency assets and must transfer the assets to the court enforcement officer, after which the seizure will take effect.

Regarding asset disposal, the court may directly transfer the cryptocurrency assets to the creditor at a value determined by the court, or instruct the enforcement officer to sell the assets. The enforcement officer may transfer the assets to a special account of a Virtual Asset Service Provider (VASP) for sale or entrust a relevant platform for sale; if necessary, the assets may also be first converted into a more liquid cryptocurrency such as Bitcoin before liquidation.

In addition, the revised draft also clarifies preservation measures for cryptocurrency during the litigation period, including false seizure and injunctions to prevent debtors from transferring or concealing cryptocurrency.

The Supreme Court of Korea stated that as civil cases involving cryptocurrency continue to increase, it is necessary to improve the relevant execution rules. The draft will be open for public comment until August 11th, and the revised content is expected to take effect in October of this year.