South Korean police have issued their first guidelines for the seizure and management of "privacy coins," clarifying regulations for storing hot wallets to prevent asset loss.
PANews reported on March 17th that, according to Asia Economy, in response to recent incidents of lost seized cryptocurrencies, the Korean National Police Agency has finalized amendments to its administrative rules regarding the "management of seized virtual assets," including for the first time specific guidelines for the management of "privacy coins." Because privacy coins such as Monero possess strong anonymity and are difficult to store in hardware wallets, the Korean police have clarified the management regulations for "software wallets (hot wallets)," requiring wallets to be generated on dedicated servers and their keys to be sealed.
South Korean police have seized approximately 54.5 billion won worth of crypto assets over the past five years, including 50.7 billion won worth of Bitcoin and 1.8 billion won worth of Ethereum. This move aims to learn from past incidents, such as the loss of 22 Bitcoins by the Gangnam Police Station and the theft of assets by the National Tax Service due to a leaked mnemonic phrase. Police also plan to select a private custodian institution in the first half of this year and are considering establishing a government-led "public custodian" system to address the increasingly complex regulatory needs of digital assets.
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