South Korean Lawmakers Push For Crypto Holdings Disclosure By Public Officials

May. 22, 2023
South Korean Lawmakers Push For Crypto Holdings Disclosure By Public Officials

South Korean lawmakers want public officials and candidates to reveal their crypto assets through a new bill. The move aims to enhance transparency and prevent the misuse of power for personal financial gain.

Furthermore, The proposed amendment to the Public Official Ethics Act aims to expand asset reporting. It includes virtual assets such as cryptocurrencies within its scope.

Moreover, Lee Man-hee, a right-wing lawmaker, emphasized preventing public officials from accumulating wealth or concealing assets improperly. The law requires officials to disclose assets such as cash, stocks, and bonds worth over 10 million Korean won (US$7,572).

However, the reporting requirements do not include cryptocurrencies and other virtual assets. Under the proposed legislation, crypto holdings must be reported, irrespective of their value. Additionally, lawmakers have suggested limiting how much officials involved in the crypto sector can invest.

By implementing these measures, South Korea aims to address concerns raised by the recent scandal involving former lawmaker Kim Nam-kuk. Kim Nam-kuk is from the opposing Democratic Party.

Local prosecutors are looking into Kim Nam-kuk for possible campaign financing violations, tax evasion, and concealment of illicit gains. His concealed Bitcoin holdings and transactions are the subject of the inquiry.

Public officials proposed the legislation to avoid similar instances of fraud and encourage responsibility among public employees. South Korea’s cryptocurrency business has enormous worldwide authority, with local investors playing a big role in the industry.

The Korean won is the third most often utilized currency in Bitcoin transactions, according to Xangle, a crypto data company. The United States currency and the Japanese yen are inextricably linked. Cryptocurrencies’ rise requires robust legal safeguards for investors and fair trading, adapting to their growing significance.

Enhancing Regulatory Measures: The Path To A Transparent Crypto Market

South Korea has been strongly establishing a regulatory framework for cryptocurrencies after the Terra-Luna crash last year. The government aims to provide clear norms that encourage openness and safeguard investors. It also aims to promote a fair and safe cryptocurrency market.

South Korea has taken a crucial step toward achieving these goals by proposing mandatory disclosure of cryptocurrency holdings for public officials. If passed, the measure will serve as an example of good government. The public will hold individuals in positions of power responsible, and they will behave in the public’s best interests.

South Korea aspires to balance innovation and investor protection as it continues to shape its regulatory landscape. The proposed legislation regarding crypto holdings reflects the government’s commitment to building a transparent and reliable framework.

This framework aims to support the rapidly growing cryptocurrency industry. South Korean lawmakers propose a bill mandating cryptocurrency holdings disclosure for public officials and candidates.

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Furthermore, The initiative aims to prevent power misuse and enhance governance transparency. Regulatory measures are crucial with the country’s significant presence in the global crypto market. They aim to protect investors and establish a fair trading environment.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.