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South Korea advances civil enforcement rules for virtual assets, proposing to allow courts to seize and liquidate crypto assets.

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On July 6, the Supreme Court of Korea issued a legislative preview of the "Partial Amendment to the Civil Execution Rules," which will include virtual assets in the scope of civil compulsory execution for the first time. After public consultation, the rules are scheduled to take effect on October 1, 2026. The main contents include: compulsory execution of digital asset transfer claims (the court can initiate execution through a seizure order, prohibiting third-party debtors such as trading platforms from transferring assets to the debtor, while also restricting the debtor from disposing of the claim); compulsory execution of digital assets themselves (the court can seize virtual assets held by the debtor, which will be taken over by an execution officer, and the debtor is prohibited from disposing of them); liquidation methods (seized digital assets can be liquidated through transfer orders or auction orders; for assets with poor liquidity, they may be converted into other digital assets first before auction).
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