South Korea Allows Division of Cryptocurrency in Divorce Proceedings
South Korea has recently passed a law that allows married couples to divide their Cryptocurrency holdings during divorce proceedings. This new law recognizes both tangible and intangible assets, including cryptocurrencies, as part of marital property. Article 839-2 of the Korean Civil Act allows either spouse to request the division of assets acquired during marriage upon divorce.
Virtual Assets Classified as Property
In 2018, South Korea's Supreme Court ruled that virtual assets, such as cryptocurrencies, are classified as property due to their economic value as intangible assets. This ruling means that cryptocurrencies accumulated during a marriage can be included in the division of the marital estate.
- This provision applies to Digital Assets like cryptocurrencies.
- A spouse can request a "fact-finding investigation" if they suspect their partner holds undisclosed Crypto Assets.
- Cryptocurrency tracking during divorce proceedings can be facilitated by Blockchain Technology.
During a divorce, couples in South Korea can choose to either liquidate the Crypto holdings before dividing them or split the tokens directly. The growing use of Digital assets in financial transactions has led to an increase in divorce cases involving cryptocurrencies worldwide.
South Koreans Turn to Crypto
A recent survey in South Korea revealed that many young South Koreans are losing faith in the national pension system and turning to Crypto and stocks as alternatives. Over three-quarters of people aged 20-39 do not trust state-issued pensions, with more than half opting to build their retirement funds with stocks and crypto.
Even election candidates in South Korea have exposure to cryptocurrencies, with approximately 7% of them owning digital assets. The country is also set to introduce stricter regulations for Token listings on Exchanges, including blocking tokens that have been hacked. Financial authorities in South Korea are preparing to release guidelines for virtual asset trading support.
As South Korea embraces the use of cryptocurrencies in various aspects of life, including divorce proceedings and financial planning, the role of digital assets continues to evolve in the country's Economy.
