New Legislation Requires Disclosure of Cryptocurrency Holdings by High-Ranking Public Officials
South Korea is taking steps to increase transparency and integrity within its public sector. The Ministry of Personnel Management has announced a new legislation that will require high-ranking public officials to disclose their cryptocurrency holdings starting next year.
Streamlined and Transparent Reporting through the Public Official Ethics System
Under the new legislation, approximately 5,800 public officials will be required to make their crypto and other asset holdings public. This information, which was previously reported in official gazettes, will now be accessible through the Public Official Ethics System (PETI).
The PETI will provide an integrated asset disclosure service that offers a more streamlined and transparent approach for public officials to report their holdings, including cryptocurrencies.
Optimism Surrounding the New System
Kim Seung-ho, the director of personnel management, expressed optimism about the implementation of the new system. He expects that it will further increase transparency within the public service community.
Tightening Laws in Response to a Token Scandal
The new legislation comes as a response to a scandal involving Kim Nam-kuk, a Democratic Party member who was allegedly in possession of over $4.5 million in Wemix tokens. This incident raised concerns about conflicts of interest and possible money laundering.
In light of this situation, lawmakers have approved two new bills that mandate elected officials and high-ranking government personnel to report their cryptocurrency holdings as part of their yearly asset declarations.
Crypto Exchanges Developing Information System for Disclosure
In addition to the new legislation, major domestic crypto exchanges in South Korea have announced plans to develop a separate information system. This system will play a crucial role in the property registration process, providing a dedicated platform for the accurate and efficient disclosure of crypto holdings.
Hot Take: South Korea Enhances Transparency in the Public Sector
South Korea’s new legislation requiring the disclosure of cryptocurrency holdings by high-ranking public officials is a significant step towards increasing transparency and integrity within the public sector. By making this information accessible through the Public Official Ethics System, the government aims to streamline and improve the reporting process. This move comes in response to a token scandal that raised concerns about conflicts of interest and money laundering. With the development of a separate information system by major crypto exchanges, South Korea is further strengthening its efforts to ensure accurate and efficient disclosure of crypto holdings. These measures are crucial in bolstering public confidence and maintaining trust in the government’s financial interests.
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