South Korea's Supreme Court Establishes Legal Framework for Crypto Asset Seizures, Effective October 1

According to South Korea's Supreme Court, on July 2, the court announced an amendment to the Rules of Civil Execution, establishing for the first time a formal legal framework governing the seizure and liquidation of virtual assets. The revised rules, currently open for public comment until August 11, are scheduled to take effect on October 1, 2026.

The amendment addresses two enforcement scenarios: execution against a debtor's right to claim asset transfer from exchanges, and execution against digital assets held directly by a debtor. The rules permit multiple liquidation methods, including transfer via court-issued orders, sale through licensed virtual asset service providers, or conversion into more liquid cryptocurrencies—a provision specifically designed to address the challenge of liquidating low-market-cap or illiquid tokens.