Starting October 1st, South Korea will introduce civil seizure rules for crypto assets, allowing courts to directly freeze, transfer, and dispose of digital assets through local crypto exchage.
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South Korea's Supreme Court plans to introduce procedures for the seizure and disposal of crypto assets, which are expected to be formally implemented in October.
According to Mars Finance, on July 6th, the South Korean Supreme Court proposed a draft amendment to its civil enforcement rules, aiming to establish procedures for the seizure, attachment, and liquidation of crypto assets, providing a clear legal basis for courts to enforce civil judgments involving cryptocurrencies. According to the draft, after a court issues a seizure order, the debtor will be immediately prohibited from disposing of the relevant crypto assets and must transfer the assets to a court enforcement officer. The seizure will officially take effect upon the officer's receipt. Regarding asset disposal, the court can directly transfer the crypto assets to the creditor according to the value determined by the court, or instruct the enforcement officer to sell the assets. The enforcement officer can transfer the assets to a dedicated account of a Virtual Asset Service Provider (VASP) for sale, or entrust a relevant platform to sell them on their behalf; if necessary, the assets can also be converted into more liquid cryptocurrencies such as Bitcoin before liquidation. Furthermore, the draft amendment clarifies preservation measures for crypto assets during litigation, including preliminary attachment and injunctions, to prevent debtors from transferring or concealing crypto assets. The South Korean Supreme Court stated that with the increasing number of civil cases involving crypto assets, it is necessary to improve the relevant enforcement rules. The draft will be open for public comment until August 11, and the revisions are expected to take effect in October this year.
The Supreme Court of South Korea seeks public comment on rules for civil enforcement of virtual assets.
PANews reported on July 6th that, according to Digital Asset, the South Korean Supreme Court issued a legislative notice on July 2nd regarding partial amendments to the Civil Enforcement Rules, establishing regulations for the enforcement of civil judgments related to virtual assets. Following a public consultation, the amendments will take effect on October 1st. The amendments cover the enforcement and realization of claims for the transfer of digital assets, as well as the enforcement and realization of the digital assets themselves. Once a court seizure order takes effect, third-party debtors are prohibited from transferring assets to the debtor, and the debtor is also prohibited from disposing of related rights. The seizing creditor can apply to the court to require the third-party debtor to state whether they acknowledge the claim and its specific details. Seized assets can be realized through transfer or sale orders. Sales can be conducted through entrusting virtual asset businesses, transferring assets to an enforcement officer's account before sale, or exchanging them for easily liquidated digital assets before sale.
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Naver's $9.9 billion stock swap deal with Dunamu has been delayed again until the end of the year, while South Korea's digital asset law remains unresolved.
According to BlockBeats, on July 7, Naver Financial and Dunamu postponed the completion date of their full share swap transaction to December 31, marking the second delay in the deal. The deal to merge Dunamu, the operator of South Korea's largest crypto exchage Upbit, into Naver's financial sector was originally scheduled to close on September 30. Dunamu disclosed a new timeline on the 6th through corrections to its initial filing last November, but incomplete digital asset legislation and pending antitrust reviews remain major uncertainties. The company has postponed its extraordinary general meeting of shareholders from August 18 to November 19, and the shareholder confirmation date has been reset to October 22. Several government approvals are still required before the transaction can be completed, including approval from the Korea Fair Trade Commission (FTC) for the merger, approval for the change of Naver Financial's largest shareholder under credit information regulations, and acceptance of the filing for the change of Dunamu's largest shareholder under specific financial transaction information laws. Dunamu stated that progress at any of these stages could further extend the timeline or even cause the transaction to change. Dunamu also pointed out that the Digital Assets Basic Law, currently under consideration in Congress, is a real variable affecting the progress and outcome of transactions. As this bill is being enacted, regulators are also simultaneously considering implementing bank-style no-fault liability rules for exchanges, requiring platforms to compensate users for losses caused by hacker attacks.
Korean stock exchanges have introduced new rules: companies listed under the technology exception that transition to businesses such as "crypto asset investment" will face delisting scrutiny.
According to a July 2nd announcement from the Korea Exchange (KRX), in order to further improve the KOSDAQ market system, the KRX announced formal revisions to its listing rules and implementation details, aiming to strictly control companies listed through the technology exception from deviating from their core business. The new rules explicitly state that companies listed through the technology exception that change their main business direction within five years of listing (excluding businesses similar to or affiliated with their original core business) will be subject to substantive delisting review. The KRX specifically cited an example last year where a biotechnology company transferred its management to an overseas digital asset company after listing and illegally transformed into a "crypto asset vault" or other digital asset professional investment institution. The KRX emphasized that such behavior causes companies to deviate from the technology and growth potential assessment basis approved at the initial listing stage, thus requiring strict delisting review. Furthermore, the new rules add additional restrictions to the grace period for delisting conditions enjoyed by companies listed through the technology exception (i.e., exemption from restrictions based on insufficient revenue or large-scale losses for 3 to 5 years), requiring these companies to publicly disclose their "corporate value enhancement plan" during this period to ensure future growth and strengthen communication with investors. This revision of regulations also includes capital market optimization measures such as expanding the standards for customized qualitative review of innovative enterprises and establishing a disclosure system for companies with low PBR (price-to-book ratio).
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