South Korea’s judiciary is set to include crypto assets in bankruptcy cases in bankruptcy cases – and the country’s leading crypto exchanges have agreed to cooperate with the courts in this regard.
In Seoul Kyunjai, the five licensed exchanges offering crypto-to-fiat trading – the market leader Apbitas well Bithumb, Coin, GopaxAnd Corbit – Agreed to a formal cooperation agreement with Seoul Bankruptcy Court It allows them to work with prosecutors and bail judges in bankruptcy proceedings.
In the past, courts have ruled in favor of Crypton in related matters. However, in November last year, a jury ruled that a BTC could take an individual as a “property”.
The agreement will be a milestone in the crypto-sector of South Korea – no cryptocurrency-related organization has ever signed a cooperation agreement with a domestic law firm.
Courts have expressed concern that individuals and entities involved in bankruptcy have been trying to “hide or exploit” their financial assets by purchasing crypto assets from time to time.
However, the new agreement would allow bankruptcy trustees to inspect creditors’ assets and authorize them to “take them out and distribute them to creditors.”
Fiat KRW helps the exchange courts determine the value of the cryptoassets at a specific time or date and when the law deems it necessary.
The media reported that an official announcement would be made this Friday, but said the exchanges had been working on the deal with the court for several weeks. Law enforcement officials say a standard framework for determining the location and value of crypto assets will help reduce “confusion” in bankruptcy cases.
As a result, the report says, more crypto sector-court agreements could follow and strengthen the “legal and institutional position” of crypto exchanges, allowing forums to increase their public profile and gain more legitimacy in the public eye.
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