South Korea Seeks Warrant Clarity for Self-Custodied Crypto Wallets

South Korea's National Tax Service (NTS) has proposed changes to the country's Criminal Procedure Act to establish clear procedures for seizing self-custodied cryptocurrency wallets during investigations.

The proposal aims to address legal gaps surrounding digital assets controlled directly through private keys, which are not adequately addressed by existing criminal procedures designed for physical property.

Researchers from the NTS argue that simply obtaining a private key may not guarantee control over digital assets because wallet owners could possess duplicate access credentials, making it difficult for investigators to prevent suspects from transferring funds before authorities secure them.

To close these legal gaps, the proposal recommends creating dedicated provisions governing the execution of seizures involving self-custodied cryptocurrencies.