South Korea proposes new rules for seizing self-custody crypto wallets

Coin Central reports that South Korea is proposing new legal amendments to address the seizure of self-custody cryptocurrency wallets during criminal investigations. The draft law aims to establish clear procedures for securely transferring and managing these digital assets under court supervision, addressing existing gaps in criminal seizure provisions.

South Korea's proposed legislation seeks to amend the Criminal Procedure Act to accommodate the seizure of digital assets held in self-custody wallets, such as hardware wallets. Current laws are insufficient for these assets, which are controlled directly by private keys and not through third-party exchanges. A research paper highlighted that existing seizure procedures, which were validated for exchange-held Bitcoin in a 2025 Supreme Court decision, do not adequately cover assets outside of centralized custody.

The proposal includes specific requirements for seizure warrants, detailing asset type, quantity, wallet address, and transfer methods. To mitigate risks associated with private key control, the plan recommends transferring seized assets into jointly managed wallets overseen by both courts and investigative authorities, rather than relying solely on access credentials. This move aims to reduce theft and misuse of seized cryptocurrencies, enhancing security and legal oversight in digital asset investigations.

Source: Coin Central