A new measure that mandates the disclosure of cryptocurrency holdings by all candidates and public officials has been introduced by lawmakers from South Korea’s ruling party. Published last Friday, the framework intends to incorporate virtual assets like cryptocurrency in the reporting scope of assets. The action is meant to stop public servants from inappropriately amassing money or hiding assets while in office.
According to the proposed law, cryptocurrency holdings, regardless of their value, must be disclosed. It also suggests putting a restriction on the amount of investments a government official who works in the crypto business is allowed to make.
Following the ongoing issue covered by Koinreport involving legislator Kim Nam-kuk, a former member of the opposition Democratic Party, this measure was introduced. As evident from existing reports, Kim Nam-kuk is presently being investigated by local prosecutors for a number of offences, including campaign financing impropriety, tax fraud, and hiding illicit earnings connected to his concealed cryptocurrency holdings and activities. The first-term congressman came under attack when it was learned that in 2021, he held almost 800,000 Wemix coins, which at the time were valued about 6 billion won (US$4.5 million), a substantial sum that did not suit his image of being modest.
Since they are not obliged to be reported, the assets were not listed in Kim’s statement of personal assets. Assets including cash, stocks, bonds, gold, jewellery, antiques, and memberships are required to be disclosed under South Korean legislation, while digital assets like crypto are not.
Virtual assets must be included in the reporting requirements, as per Lee Man-hee, a right-wing politician who suggested the modification to the Public Official Ethics Act. Cryptocurrencies and other virtual assets are currently excluded from reporting, with the legislation only requiring the declaration of assets like cash, equities, and bonds over 10 million Korean won (about $7,572 US).
Reflecting on reports, a sizable fraction of worldwide cryptocurrency investors are from South Korea. The U.S. dollar and the Japanese yen are the two currencies that are used the most frequently in Bitcoin transactions, with the Korean won coming in third.
South Korea has been meticulously creating a regulatory framework to guarantee transparency and ethical trading practises in the country’s cryptocurrency sector ever before Terra-Luna collapsed last year. With these initiatives, regulation will be strengthened and a safe atmosphere will be created for crypto-related operations. Before being presented to a plenary session this week, the change is anticipated to be approved via the parliamentary law and justice committee on Wednesday.