South Korea's Tax Authority Proposes Law Amendment for Self-Custodied Digital Asset Seizure

According to papers published by South Korea's National Tax Service (NTS) officials in June, the agency is recommending amendments to criminal procedure law to regulate seizures of self-custodied digital assets, particularly private wallets like hardware wallets. Four NTS investigators, including investigation team chief Jang Hee-won, published the paper in the Korean Criminal Justice Policy Institute journal, citing challenges in enforcing seizures of assets stored in personal wallets where private keys are held by individuals rather than centralized exchanges.

The NTS paper proposes that seizures should involve joint custody structures managed by multiple parties—courts, investigation agencies, and asset owners—rather than sole agency control. The proposal aims to prevent fund transfer or disposal by implementing clearer procedures and safeguards for handling self-custodied digital assets.