Key Points:
- South Korea passes bill requiring officials to report on their crypto assets.
- Crypto holdings over $760 in wealth reporting by senior officials.
- The legal initiative started in response to major government scandal involving crypto exchange.
The South Korean government is taking measures to regulate the use of digital currencies like Bitcoin by its officials.
The government is implementing new laws that will require lawmakers and high-ranking public officials to report on their holdings of cryptocurrencies. This move comes in response to a major government scandal that involved some National Assembly members holding large amounts of cryptocurrency.
On May 25, South Korea’s National Assembly unanimously passed a bill that obligates lawmakers and high-ranking public officials to disclose their cryptocurrency assets. The bill involves amendments to the National Assembly Act and the Public Service Ethics Act. The amendment to the National Assembly Act was unanimously passed with support of 269 votes from 269 lawmakers present. The amendment to the Public Service Ethics Act received 268 votes from 268 lawmakers present. This means that cryptocurrency will now be included in the list of registered property by lawmakers.
With this new legislation, the South Korean government aims to prevent potential money laundering, conflicts of interest, and the use of insider information. It is widely referred to as the “Kim Nam-guk Prevention Law,” named after former Democratic Party member Kim Nam-kuk who was found to have held at least $4.5 million in crypto assets at Wemix exchange. His case had raised concerns among lawmakers and the public alike, leading to the enactment of this new legislation.
The new law requires public officials and members of the National Assembly to disclose cryptocurrency assets that are worth over $760, similar to how they would report their cash, stocks, bonds, gold, and other assets. This move is expected to increase transparency among public officials and restore public trust in the government.
This legislation was expected to come into effect in December 2023 after a six-month grace period. However, some lawmakers, like People Power Party’s Representative Yun Jae-ok, have urged to enforce the change by July. This could mean that the new regulations could come into effect sooner than expected.
South Korean government’s actions are a step towards regulating the use of cryptocurrencies and increasing transparency among public officials.
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