South Korea's National Police Agency is closing in on appointing a private-sector custodian to handle seized cryptocurrency assets, according to Munhwa Ilbo. The decision could arrive as early as this week.
The move addresses a structural weakness in how police have managed confiscated digital assets. Loss and mishandling of seized crypto in police custody have been a recurring vulnerability, and outsourcing to a specialized private custodian is meant to tighten the chain of custody and reduce exposure to internal lapses.
Seven firms are competing for the contract. The National Police Agency has been evaluating candidates based on custody infrastructure, compliance credentials, and insurance coverage that would protect seized assets from theft or operational failure.
The specifics of each bidder remain unclear from public reporting. Munhwa Ilbo did not name the contenders or detail the evaluation criteria beyond the general framework.
Once appointed, the custodian would assume day-to-day responsibility for storing and securing seized crypto pending trial, restitution, or destruction orders. This removes the burden from police evidence lockers and transfers liability to an entity built specifically for asset custody. Similar custody arrangements exist in other jurisdictions handling digital asset seizures, though South Korea's implementation will be shaped by local regulatory requirements and the terms the National Police negotiates.
The decision timing is tight. Munhwa Ilbo suggests resolution within days, though final contract terms could extend the timeline beyond the initial announcement.