New Rules for Seizing Cryptocurrency for Debts Come into Effect in South Korea

The Supreme Court of South Korea has established special procedures for the enforcement of cryptocurrency in civil cases. Amendments No. 3280 to the Civil Execution Rules were adopted on October 12, 2026, and came into effect on November 1. The court published an official explanation of the changes on November 9.

The new norms define how courts can seize, transfer, and sell digital assets to settle debts. They apply to both cryptocurrency held on trading platforms and assets managed by owners themselves.

How Cryptocurrency Will Be Seized from Exchanges

If cryptocurrency is stored on an exchange, the object of enforcement becomes the debtor's right to demand the transfer of the corresponding assets from the platform operator.

By court order, the exchange or other custodian is prohibited from transferring the cryptocurrency to the debtor. The debtor, in turn, cannot dispose of the seized right to claim or receive the corresponding assets.

The new rules also provide for a disclosure procedure. At the creditor's request, the court may require the custodian to provide information on the existence of cryptocurrency, its types, and quantities.

The response must be sent within one week after receiving the corresponding court order. The custodian must also report the existence of other claims or previously imposed restrictions on these assets.

What Has Changed for Personal Crypto Wallets

The amendments also apply to cryptocurrency managed directly by the debtor, including through self-custody wallets.

In such cases, the court may prohibit the owner from disposing of the assets and require them to be transferred to a court executor. After receiving the cryptocurrency, the executor must report its type, quantity, and transfer address to the court.

However, executing such orders may be technically more challenging than blocking funds on a centralized exchange. If access to private keys is exclusively with the owner, a court ban alone does not ensure the transfer of coins.

The rules also allow for provisional measures that restrict the disposal of cryptocurrency until the final resolution of the dispute.

How Seized Assets Will Be Used to Settle Debts

The court may order the cryptocurrency to be transferred directly to the creditor at an established value or sold through a court executor.

Several methods of realization are provided, including sale through a cryptocurrency platform and transfer of assets to the court executor's account. If the digital asset is difficult to sell directly, a preliminary exchange for a more liquid cryptocurrency is allowed.

The realization value is determined taking into account the market price on the date of sale or another justified assessment.

According to the Supreme Court, the number of civil enforcement cases involving registered cryptocurrency service providers increased from 423 in 2023 to 3,136 in 2025. From January to September 2026, 3,186 such cases were already registered.

Previously, South Korean courts considered such claims within the framework of general procedures for enforcing property rights. The new rules establish a special procedure considering the technical features of cryptocurrencies and also apply to enforcement cases that were already under consideration as of November 1.