South Korean courts set new guidelines to exclude crypto investment debts in rehabilitation cases

Courts in South Korea will apply new guidelines in rehabilitation hearings to write off individuals' cryptocurrency debts in a bid to prevent citizens from going bankrupt, according to the original report. Under the rules, three courts will exclude debts arising from stock or cryptocurrency investments from liquidation calculations, which in theory lowers the total amount debtors must repay to creditors in personal rehabilitation proceedings. The courts also stated they will remain vigilant against investors who attempt to deceive them under the new framework.