South Korean courts are considering new guidelines that would allow personal bankruptcy proceedings to exclude cryptocurrency investment debts from liquidation calculations. Newly established courts in Daejeon, Daegu, and Gwangju are set to adopt these guidelines, which aim to reduce the repayment burden on debtors by classifying such debts as general property losses rather than speculative debts. Suwon and Busan courts have already implemented similar measures, ensuring that debtors cannot disguise purchases as failed investments to manipulate the system.
South Korean Courts May Exclude Crypto Debts from Bankruptcy Liquidation
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