Bitcoin Held on Exchanges: South Korea’s Supreme Court Landmark Ruling
The South Korean Supreme Court’s recent decision marks a pivotal moment in the regulation of cryptocurrency ownership. The court has ruled that Bitcoin stored on exchanges is subject to seizure under the country’s Criminal Procedure Act, setting a new standard for digital asset law enforcement in a country with one of the world’s highest rates of cryptocurrency adoption.
A Closer Look at the Case
This significant decision arose from a 2020 money laundering investigation involving 55.6 Bitcoin (worth approximately 600 million Korean won or $413,000 at the time). Police seized the assets from an exchange account held by a suspect identified as Mr. A. Mr. A contested the seizure, arguing that Bitcoin, as a non-physical object, could not be taken under Article 106 of the Criminal Procedure Act. However, South Korea’s Supreme Court dismissed this argument.
The court stated that under the existing law, both tangible and intangible objects—including electronic information—are eligible for seizure. Bitcoin qualifies as an asset with economic value, allowing it to be managed, traded, and controlled. This ruling aligns with previous judgments in South Korean courts, which have held cryptocurrencies to be intangible property.
South Korea’s Crypto Landscape
South Korea ranks among the top nations for cryptocurrency ownership. In March 2025, it was reported that more than 16 million South Koreans—about a third of the population—held cryptocurrency accounts on domestic exchanges. The country’s move toward regulating and defining crypto assets reflects its effort to balance innovation with legal accountability.
Global Perspective on Crypto as Property
South Korea’s ruling echoes global trends where digital assets are increasingly being recognized as legal property. For instance, in 2021, the United Kingdom passed legislation granting cryptocurrencies a property status. As more jurisdictions embrace legal frameworks for digital assets, clarity surrounding ownership, theft, and asset recovery will improve.
What It Means for Crypto Enthusiasts
This ruling underscores the importance of understanding the legal implications of cryptocurrency ownership. In light of such regulations, crypto owners are advised to use robust storage solutions like cold wallets to ensure greater control over their assets. Products such as the Ledger Nano X Cold Wallet provide enhanced security for managing digital assets, offering peace of mind in a rapidly evolving legal landscape.
Final Thoughts
The South Korean Supreme Court’s decision serves as a clear indication of the evolving intersection between digital assets and traditional legal frameworks. For crypto enthusiasts and investors alike, staying informed about local regulations and securing investments against potential risks remains crucial. As the world embraces cryptocurrencies, navigating the changing regulatory landscape will be key to ensuring their safe and lawful possession.
