According to Odaily Odaily, the Korean National Police Agency recently finalized a draft directive on compliance matters at each stage of cryptocurrency confiscation, which for the first time includes a software wallet (hot wallet) management scheme for the management of confiscated dark coins. Due to their strong anonymity, dark coins are difficult to store in hardware wallets, and most mainstream exchanges do not support their trading. Previously, in the absence of relevant regulations, frontline law enforcement agencies could only store dark coins in software wallets.
South Korean police have confiscated approximately 54.5 billion won worth of crypto assets over the past five years, based on current market prices. This includes about 50.7 billion won worth of Bitcoin and about 1.8 billion won worth of Ethereum. The National Police Agency plans to complete the selection of a private custodian institution by the first half of the year. Previous three tenders failed, primarily because most qualified domestic custodian institutions were small to medium-sized, and the police budget was only 83 million won.
Experts recommend establishing a government-led "public trusteeship" system to entrust confiscated crypto assets to professional trustees for unified management in order to prevent security incidents.
