South Korea Seeks Private Crypto Custodian Amid Security Concerns

South Korea's National Tax Service (NTS) has announced plans to select a private cryptocurrency custodian after a security lapse exposed a wallet seed phrase in an official press release. The incident led to the unauthorized transfer of approximately $4.8 million in tokens, highlighting the need for improved security measures in handling digital assets.

The NTS will evaluate potential providers based on factors such as security requirements, company size, and compliance with South Korea's Virtual Asset User Protection Act. The selection process aims to be completed by the first half of 2026.

Separately, the World Gold Council has released a framework for tokenized gold, aiming to standardize essential market processes and improve access to digital gold products. The council has proposed a platform called 'Gold as a Service,' which would connect physical gold custody with digital systems used to issue and manage tokenized gold products.

SEC Chair Paul Atkins has also provided clarity on the agency's approach to crypto regulation, stating that it will focus on interpreting how federal securities laws apply to digital assets. This marks a shift from the SEC's previous 'regulation by enforcement' campaign, with the agency now prioritizing a more structured approach to regulation.