South Korea is developing some of the world’s strictest cryptocurrency seizure rules to service civil debt. The Supreme Court issued amendments to the Civil Enforcement Rules, which regulate the freezing, transfer and liquidation of virtual assets. The public debate will last until 11 August, with entry into force scheduled for 1 October 2026.

The new regulations recognize cryptocurrency as "intangible property with economic value" and establish standardized procedures for ships. After the seizure decision, the debtor loses its right to dispose of assets and exchanges are obliged to hand them over to law enforcement. Lenders can obtain a cryptocurrency directly or authorize its sale through special accounts with licensed providers.

The amendments also address the problem of illiquid tokens, allowing them to be exchanged for more liquid assets before sale. The initiative complements the 2024 Virtual Asset Users Protection Act.