I have been trying to keep in terms with the updates in the crypto and Artificial intelligence (AI) world and the recent happenings are breathtaking showing how fast AI and crypto adoption is growing like wild fire.
Cryptocurrency is growing worldwide in a way that posed new challenges for legal systems as they strive to accommodate digital assets within traditional frameworks.
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A recent update from a South Korean law firm IPG Legal has stated the South Korean law's position regarding cryptocurrencies, particularly in a divorce case. The firm said in response to questions from clients, that under South Korean law, both tangible and intangible assets can be divided during a divorce:
“Under Article 839-2 of the Korean Civil Act, either spouse may request a division of marital assets accumulated during the marriage upon the divorce in Korea.”
IPG Legal referred to a 2018 ruling by South Korea’s Supreme Court that confirmed cryptocurrency and virtual assets as property due to their economic value as intangible assets. In the case, the courts ruled that digital assets, including Bitcoin, can be divided in divorce settlements, similar to how other property and financial assets are handled. This means that the South Korean law allows spouses to claim cryptocurrency and Bitcoin holdings during divorce proceedings.
It looks like the South Korean courts have gone ahead of other nations in recognizing cryptocurrency as part of marital assets. This development builds upon the 2018 Supreme Court ruling that acknowledged cryptocurrency as intangible property with measurable economic value. It follows that spouses can legally request that the court investigates any undisclosed crypto assets. This process typically involves blockchain analysis and forensic tracing techniques to track down hidden cryptocurrencies that one spouse may be attempting to conceal.
This legal acknowledgment aligns with the increasing global trend where courts are grappling with how to address the tangibility and stability of cryptocurrency. This is because digital assets fluctuate in value and the anonymity of users can complicate assessment, making it difficult for courts to establish fair settlements.
The South Korean case reflects a broader movement towards the normalization of crypto assets within the financial and legal systems, and it signals a major step toward regulating digital currencies. This development reinforces the need for transparent asset disclosure in divorce proceedings. This development also ensures that both parties have equal access to marital wealth, hence, protecting individuals from being financially disadvantaged due to their spouse's concealed digital assets.
The decision reflects a broader trend in the digital age, where governments and legal systems must grow to accommodate decentralized and digital financial systems. This ruling may encourage more transparency and regulation in South Korea's crypto space and will reduce the likelihood of individuals hiding assets or committing financial fraud.
As the adoption of cryptocurrency grows globally, similar legal frameworks are expected to emerge in other jurisdictions.
Posted Using InLeo Alpha
