Cryptocurrency

Bitcoin

South Korea now recognizes cryptocurrency holdings as divisible assets during divorce proceedings. 
According to a leading law firm in the country, IPG Legal, cryptocurrencies like Bitcoin (BTC) can be included in the marital estate, allowing couples to divide them upon separation. 
<h2 id="digital-assets-considered-property-in-south-korea">Digital Assets Considered Property in South Korea</h2> 
In an October 10 blog <a href="https://www.thekoreanlawblog.com/2024/10/korean-divorce-cryptocurrency-asset-division.html" target="_blank" rel="noopener" data-wpel-link="external">post</a>, lawyer Sean Hayes stated that under Article 839-2 of the Korean Civil Act, both tangible and intangible assets acquired during marriage, including cryptocurrencies, are subject to division. 
The clarification stems from a 2018 Supreme Court decision that officially categorized virtual assets as property due to their economic value. It gives divorcing couples the option to request a court-ordered investigation to determine their partner’s crypto holdings, allowing for the easier tracking of hidden wealth. 
Contrary to popular belief, blockchain technology is not anonymous; rather, it is pseudonymous, meaning that while a user’s real-world identity may not be directly attached to their on-chain addresses, transactions they make are still traceable. 
<h2 id="options-for-dividing-cryptocurrency">Options for Dividing Cryptocurrency</h2> 
In his post, Hayes, who is the first non-Korean working in the country’s court system, said that if a spouse knows what crypto exchange their partner used for such transactions, they could petition the court to obtain records from the platform to ascertain the amount of digital assets held. 
Conversely, if a partner has no idea what crypto exchange their better half used to acquire their crypto, they could still use the court to institute forensic on-chain investigations in combination with bank records to uncover undisclosed digital assets. 
In line with the law, Korean couples have two primary options for dividing cryptocurrency: they can either cash out their holdings or split the tokens directly. 
The Asian country’s move to include cryptocurrencies in the division of marital assets mirrors its broader focus on transparency. In December 2023, it <a href="https://cryptopotato.com/south-korea-introduces-mandatory-crypto-disclosure-for-high-ranking-officials/" target="_blank" rel="noopener" data-wpel-link="internal">introduced</a> legislation requiring high-ranking public officials to start disclosing their crypto holdings as of June 2024. 
This mandate came in the wake of a scandal in May 2023, where a senior political figure in the country was alleged to have hidden $4.5 million worth of Wemix, the native token of the Korean blockchain project Wemade. 
It raised questions about potential conflicts of interest, insider information misuse, and even possible money laundering. 
The post <a href="https://cryptopotato.com/bitcoin-recognized-as-divisible-property-in-south-korean-divorces/" rel="nofollow">Bitcoin Recognized as Divisible Property in South Korean Divorces</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

Bitcoin Recognized as Divisible Property in South Korean Divorces

Table of Contents

CryptoPotato_News

Other articles published on Oct 11, 2024

Qubetics’ QubeQode IDE Enhances Blockchain Development as Ondo and Terra Drive Innovation

Nigerian Court Rejects Binance Executive Poor Health Bail Request

Five reasons why the first Telegram ICO is set to moon

Mt. Gox pushes repayment plan deadline to October 2025

Mt. Gox clients won’t get paid again in 2024: How is the industry reacting?

Trump-backed World Liberty Financial to start public sale on Oct 15th

Join our free newsletter for daily crypto updates!