On May 29, South Korea’s digital asset custody firm KDAC announced that it had been selected by the South Korea National Tax Service as a service provider for “custody and management of seized virtual assets under委託,” and it has signed a custody mandate agreement, with the project set to start in June. KDAC CEO Jo Seong-il confirmed that four domestic South Korean virtual asset custody firms participated in the bidding, and KDAC scored the highest in the technical evaluation to be selected. This is the first case in South Korea where seized virtual assets have been entrusted to a professional private custody institution for custody.
Selection Details Confirmed by KDAC and CEO Statement
KDAC CEO Jo Seong-il confirmed: “A total of four South Korean domestic virtual asset custody companies participated in the project. KDAC received the highest score in the technical evaluation and was ultimately selected as the operator. This is the government’s formal recognition of KDAC’s reputation and professional capabilities accumulated over many years.”
KDAC confirmed that the project aims to introduce a private custody operating system, and to establish a comprehensive formal operating model after the pilot run. The operating model designed by the South Korea National Tax Service is expected to become a reference case for other South Korean public institutions—including the Korean Prosecutor’s Office, the National Police Agency, and the Korea Customs Service—for managing virtual assets.
Project Goals and Systematic Measures Confirmed by the National Tax Service
The National Tax Service confirmed that the goal of this project is to reduce incident risk when directly storing and managing seized virtual assets, while also improving operational stability and efficiency. Specific measures include: achieving systematic management of seized virtual assets through process improvements, the development of standard operating guidelines and manuals, and training for relevant personnel. KDAC’s model design is to establish a formal operating framework after the pilot, to serve as a reference for public institutions when managing virtual assets.
FAQ
What is the historical significance of KDAC being selected this time?
According to reports, this is the first case in South Korea’s history in which a government agency entrusted seized virtual assets to a professional private custody institution for custody. KDAC’s pilot project is expected to become a benchmark for other public institutions such as the Prosecutor’s Office, the Police Agency, and the customs service.
How did KDAC win the bidding, and how many companies participated?
According to KDAC CEO Jo Seong-il’s confirmation, four domestic South Korean virtual asset custody firms participated in the bidding. KDAC scored the highest in the technical evaluation and was ultimately selected by the National Tax Service as the operator.
What are the project’s launch timeline and policy basis?
KDAC confirmed that the project corresponding to the custody mandate agreement signed with the South Korea National Tax Service will officially launch in June 2026. The project is the follow-up implementation measure to the “Plan for Improving the Custody and Management System for Virtual Assets in the Public Sector,” jointly released by relevant Korean departments in April 2025.
