South Korea's Supreme Court Proposes Seven-Day Deadline for Crypto Exchanges

The South Korean Supreme Court has proposed amendments to the Civil Execution Rules that could give cryptocurrency exchanges just seven days to disclose customer holdings once served with a court order.

The proposed rules aim to create a standardized process for creditors to freeze, identify, and liquidate virtual assets held by debtors.

Under the framework, if an exchange holds assets on behalf of a debtor, a court could attach the debtor's right to receive those assets rather than initially seizing them.

Once served with a court order, exchanges would have one week to state whether they recognize the debtor's claim and provide information about the type and quantity of assets held, as well as any competing seizures or provisional orders.