A court in south korea ruled that the seizure of approximately 216 bitcoins by the police of south korea in the context of a search was an act inappropriate. This is the first decision of its kind in the country. Indeed, the district court in Suwon has stated that “the bitcoin is not likely to confiscation” after the authorities seized 216 bitcoins from an individual accused of having administered a porn site.
Jurisprudence for matters related to the transactions of virtual currencies
According to an article in the local daily Kyunghyang Shinmun, the case concerned Ahn, a man aged 33, who was indicted for having administered AVSNOOP.club, a porn site, since 2013. Ahn was arrested in may last with in his possession 1.9 billion Korean Won in cash, and 216 bitcoins. It is not yet known whether it is payment of the part of the members of the site, or if Ahn has exchanged a portion of the liquid in bitcoin. Nevertheless, the district court in Suwon has refused to accept the confiscation of bitcoins. It ruled : “It is not appropriate to confiscate the bitcoins, because they are in the form of electronic files without physical entities, in contrast to the silver. The virtual currency may not take a value standard objective. “
In addition, the court explained that in cases where virtual currencies are acquired as the profits out of crime, confiscation should be taken into account in calculating the amount corresponding to the product of criminal, rather than confiscate totally virtual currency.
South Korea provides for other regulations relating to crypto-currencies
South Korea, being one of the commercial markets the busiest in the world for bitcoin, could soon see regulations imposed by local authorities regarding the industry of bitcoin. Indeed, last June, Park Yong-Jin, a legislator and member of the ruling party of the country, has developed a new draft law that aims to regulate and legalize digital currencies in South Korea. The regulatory authority of the country’s financial, the financial services Commission, has set up a “task force” of the digital currency in November of 2016 who will take charge of the drafting of the regulatory parameters for the exchange of bitcoins across the country.