South Korea's Police Draft Rules for Seized Cryptos Amid Custody Concerns

South Korea's National Police Agency has drafted guidelines for handling seized cryptocurrencies. The move aims to standardize digital asset custody practices across law enforcement.

The draft directive outlines requirements at each stage of the crypto seizure process, including software wallet management and handling private keys. Field investigators need systematic guidelines as investigative methods evolve, according to a police spokesperson.

In the past, seized assets were stored in warehouses, but now they must manage wallet addresses and private keys, said the spokesperson.

The agency plans to select a private custody provider within the first half of 2026. Budget limitations have added to the challenge, with the agency allocating roughly $55,600 to manage seized crypto assets.