South Korea's Supreme Court has officially determined that Bitcoin and other digital assets held on cryptocurrency exchanges fall under the scope of criminal asset seizure. The court rejected an appeal challenging this position, solidifying the legal precedent.

This ruling marks a significant moment for regulatory clarity in the region. It establishes that exchange-held crypto is not exempt from law enforcement action when tied to criminal investigations. The decision has implications for how exchanges operate, user protections, and the broader legal framework surrounding digital asset custody in jurisdictions with similar legal systems.

For traders and exchange users in South Korea, the ruling underscores the importance of understanding the regulatory landscape and how digital assets are treated under local law.