South Korean Police Establish First "Dark Coin" Management Guidelines, Confiscated Cryptocurrency Assets Worth Approximately 54.5 Billion Won Over the Past Five Years

SmartContractAuditor · 2026-03-17T03:36:34+00:00

South Korea's National Police Agency has completed a draft plan for cryptocurrency asset forfeiture management, introducing monero hot wallet management for the first time. Over the past five years, forfeited assets totaled approximately 54.5 billion Korean won, primarily consisting of Bitcoin and Ethereum. Experts recommend establishing a government-led public custody system to ensure secure management.

SmartContractAuditor

2026-03-17 03:36:34

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Odaily Planet Daily reports that the Korean Police Agency has recently completed a draft regulation on compliance for confiscated cryptocurrency assets at various stages, which for the first time includes a management plan for software wallets (hot wallets) used to store Dark Coins. Due to the strong anonymity of Dark Coins, they are difficult to store in hardware wallets, and most mainstream exchanges do not support trading them. Previously, frontline law enforcement agencies could only store Dark Coins in software wallets in the absence of relevant regulations.

In the past five years, the Korean police have confiscated approximately 54.5 billion KRW worth of cryptocurrency assets at current market prices, including about 50.7 billion KRW in Bitcoin and around 1.8 billion KRW in Ethereum. The Police Agency plans to select a private custody institution within the first half of the year. The previous three tenders were unsuccessful, mainly because qualified domestic custody institutions are mostly small to medium-sized, and the police budget is only 83 million KRW.

Experts recommend establishing a government-led “public custody” system to entrust confiscated crypto assets to professional trustees for unified management, in order to prevent security incidents.

BTC1,36%

ETH3,11%

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