South Korea’s National Police Agency Drafts Crypto Custody Rules for Seized Assets

According to local media, South Korea’s National Police Agency has introduced new compliance guidelines for seized cryptocurrencies after repeated security lapses, tightening procedures for seizure, storage, and ongoing management.

Summary

South Korea’s National Police Agency has introduced new guidelines for handling seized cryptocurrencies after multiple security lapses, according to local media outlet Asiae. The directive sets compliance requirements across several stages of digital asset seizure, storage, and management. The update builds on the agency’s broader effort to formalize custody standards for confiscated virtual assets, including earlier measures covering privacy coins, hot wallet operations, and the use of a private custodian.

Terms & Concepts
  • cryptocurrencies: Digital assets that use blockchain or similar technology to record and transfer value electronically.
  • privacy coins: Cryptocurrencies designed to conceal transaction details, which can make tracing and compliance more difficult.
  • hot wallet: A cryptocurrency wallet connected to the internet, typically used for storing or transferring assets with faster access.