I am just curious and have been googling on whether the law has rules about virtual wallets. Maybe I am just not really familiar with the technical terms so I do not understand well. Or I just didn't use the correct search terms.
To give an example, if you have debts or have to pay for alimony or something of the like, are virtual wallets included in your assets to be seized or something?
According to the summary of this article:
https://www.acamstoday.org/real-considerations-for-law-enforcement-in-seizing-virtual-currency/"The bottom line for law enforcement is that they cannot seize virtual currency if they do not recognize it and do not know where to look. Even if evidence of virtual currency is found, unless law enforcement is equipped with the knowledge and the tools to take secure possession of it, then it will not happen and criminals will keep their ill-gotten gains."
So does that mean that the law will not touch your virtual wallet in case of debt, for example?
Yes they can confiscate your cryptocurrency if they are aware of it, its possible. Whether crypto assets are legal or illegal in your country, I believe the government can always confiscate it. It only gets worst when it is illegal in your country, cause you will also be punished severally for holding an asset that has been declared as illegal by the government of your country. In a place where it is legal, they wont confiscate it if they are not aware you are in possession of cryptocurrency. Hope I gave the right answer to your question.