South Korean Crypto Exchanges Face Seven-Day Deadline for Customer Disclosure

South Korea's Supreme Court is finalizing new rules for crypto seizure, which could give exchanges just seven days to disclose customer holdings once served with a court order. The proposed amendments to the Civil Execution Rules would create a standardized process for creditors to freeze, identify and liquidate virtual assets held by debtors.

Under the framework, creditors could ask the court to require the provider to disclose what it holds. Exchanges would then have one week to state whether they recognize the debtor's claim, identify the type and quantity of assets, and disclose competing seizures or priority rights.

The rules would extend South Korea's regulatory build-out into civil debt collection and apply to proceedings already underway when they take effect on October 1. This means exchanges will have roughly seven weeks after the August 11 consultation deadline to prepare for a more formal role in civil debt enforcement.