The South Korean judiciary has included crypto assets on the list of debtors’ assets in a bankruptcy case, and the country’s crypto exchanges have agreed to cooperate with the court on the matter.
According to Seoul Kyungjae, the five licensed exchanges that offer crypto-to-fiat transactions — namely Upbit, along with Bithumb, Coinone, Gopax and Korbit — have agreed with the Seoul Bankruptcy Court on the terms of a formal cooperation agreement that will soon see them work with prosecutors and bailiffs Cooperate in legal proceedings related to bankruptcy. Courts have previously struggled to treat cryptocurrencies as a true asset class in related cases.
However, the legal regulations were established last November when a judge ruled that bailiffs could treat an individual’s bitcoin (BTC) as a form of “property” with value. Courts have expressed concern that individuals and companies filing for bankruptcy are increasingly trying to hide or expropriate their financial assets by purchasing crypto assets.