A draft bill due by year-end would move government-held virtual assets into a new state-asset framework, with immediate auctions as the default and split sales under review for larger disposals.
South Korea plans to treat virtual assets such as Bitcoin obtained through criminal asset forfeiture or donations as state assets and, in principle, auction them immediately after taking possession. The plan, unveiled on Aug. 6 as part of the government's K-Asset Innovation Project, would fully revise the State Property Act into a Framework Act on State Assets, expanding a real estate-centered regime to cover virtual assets, intellectual property rights, stocks and equity stakes, with a draft bill due by year-end. As of April, the government held about 78 billion won ($56.3 million) in virtual assets, which have so far been managed under internal guidelines, and it is also seeking legal grounds for custody through private exchanges, recovery from overseas exchanges and digital wallets, and split auctions when large sales could move the market.