South Korea Proposes New Rules for Seizing Self-Custody Crypto Wallets

South Korea is proposing new legal amendments to address the seizure of self-custody cryptocurrency wallets during criminal investigations. The draft law aims to establish clear procedures for securely transferring and managing these digital assets under court supervision, addressing existing gaps in criminal seizure provisions.

The proposed legislation seeks to amend the Criminal Procedure Act to accommodate the seizure of digital assets held in self-custody wallets, such as hardware wallets. Current laws are insufficient for these assets, which are controlled directly by private keys and not through third-party exchanges.

A research paper highlighted that existing seizure procedures, validated for exchange-held Bitcoin in a 2025 Supreme Court decision, do not adequately cover assets outside of centralized custody. The proposal includes specific requirements for seizure warrants, detailing asset type, quantity, wallet address, and transfer methods.