- South Korea’s Supreme Court deems Bitcoin legally seizable.
- Applies to Bitcoin on centralized exchanges.
- Potential regulatory changes are expected.
South Korea’s Supreme Court declared Bitcoin on centralized exchanges as seizable property under law on December 11, 2025, stemming from a 2020 money-laundering case.
The decision clarifies Bitcoin’s legal status for seizure, influencing future investigations and holdings on exchanges, emphasizing broader implications for virtual asset regulation.
Supreme Court Ruling
The Supreme Court of South Korea has ruled that Bitcoin held on centralized exchanges qualifies as seizable property. This decision extends previous rulings, marking a significant shift in legal treatment of digital assets in the country.
Bitcoin is an electronic token with the ability to be independently managed, traded, and substantially controlled in terms of economic value, making it a target for seizure by courts or investigative agencies. — Justice Kwon Young-jun, Source: Chosun Ilbo English
The ruling involves the Supreme Court of Korea, Second Division, presided by Justice Kwon Young-jun. It stems from a money-laundering case involving 55.6 BTC seized from Mr. A’s exchange account in 2020.
Impact on Exchanges and Regulation
The decision is expected to affect exchange procedures and security measures. It clarifies that Bitcoin, along with other cryptocurrencies on exchanges, may be subject to seizure during investigations.
This judicial decision does not officially introduce new regulations but signifies an alignment of legal frameworks with evolving digital asset landscapes, affecting how exchanges handle custodial roles and respond to seizure orders.
Compliance and Regulatory Scrutiny
South Korea’s exchanges might face increased compliance costs and regulatory scrutiny. This ruling supports the legal narrative that digital assets share equivalent asset protection requirements as traditional financial assets.
Though detailed quantitative effects on Bitcoin markets remain undetermined, this ruling aligns with historical trends of regulatory tightening in financial technologies. It highlights a judicial endorsement of digital currencies as viable economic assets.
| Disclaimer: The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions. |
