South Korea's Supreme Court plans to introduce procedures for seizing and disposing of crypto assets, expected to be formally implemented in October.

BlockBeats news, July 6th, the Supreme Court of South Korea proposed a revised draft of civil enforcement rules, aiming to establish procedures for the seizure, attachment, and cash-out of crypto assets, providing a clear legal basis for courts to enforce civil judgments involving crypto assets.

According to the draft, after the court issues a seizure order, the debtor will be immediately prohibited from disposing of the relevant crypto assets and must transfer the assets to the court executor; once the executor receives the assets, the seizure will officially take effect.

Regarding asset disposal, the court may directly transfer the crypto assets to the creditor at a value determined by the court, or instruct the executor to sell the assets. The executor may transfer the assets to a dedicated account of a Virtual Asset Service Provider (VASP) for sale, or commission relevant platforms to sell the assets on their behalf; if necessary, the executor may first exchange the assets into more liquid cryptocurrencies such as Bitcoin before cashing them out.

In addition, the revised draft also specifies asset preservation measures for crypto assets during litigation, including provisional seizure and injunctions, to prevent debtors from transferring or concealing crypto assets.

The Supreme Court of South Korea said that, as civil cases involving crypto assets continue to increase, it is necessary to improve the relevant enforcement rules. The draft will be open for public comments until August 11, and the revised provisions are expected to take effect in October this year.