South Korea prepares new rules for cryptocurrency seizures 🔐
March 17, 2026
In South Korea, authorities have decided to address what happens to crypto after it is seized. The issue is not the seizure itself, but how to store these assets safely without losses or disruptions.
What happened
The National Police Agency has started developing new rules after issues with storing already confiscated crypto assets. It turned out that without clear procedures, even seized funds remain at risk.
According to local media, in the first half of 2026 the police plan to select a private custody provider to manage such assets.
What will change
The regulator aims to define the full process: how crypto should be seized, who is responsible for access, and how it must be stored after confiscation.
This includes access control, secure key storage, and a clear accountability system to prevent losses or internal errors.
Why it matters
Cryptocurrency is not a bank account or cash. If access is lost or procedures are violated, the funds are effectively gone.
That is why countries are gradually moving from simply seizing assets to building infrastructure for storing them. South Korea is now taking this step.