New Law Requires South Korean Politicians to Disclose Bitcoin Holdings

New Law Requires South Korean Politicians to Disclose Bitcoin Holdings

South Korea passes a new law requiring politicians and high-ranking government officials to disclose their crypto holdings in response to a recent scandal involving a politician violating campaign finance laws using cryptocurrency.

South Korea’s National Assembly has officially passed a bill into law requiring lawmakers and high-ranking Government officials to disclose their cryptocurrency investment holdings. 

The new law is a response to a recent scandal involving a politician allegedly violating campaign finance laws using cryptocurrency. 

The “Kim Nam-guk Prevention Law”

Reports by a report from local news agency News1, the relevant amendments to the National Assembly Act and Public Service Ethics Act passed unanimously on May 22 between all lawmakers present for each, with 269 votes and 268 votes respectively. 

The National Assembly Act amendment puts digital currency on the list of lawmakers’ registered properties and “private interests.” In the meantime, the amendment to the Public Officials Ethics Act passed the Public Administration and Security Committee on the same day, making both high-ranking officials and National Assembly members must register their holdings. 

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The bill was originally scheduled for implementation in December but was fast-tracked to these 30 days after the conservative People Power Party’s newly elected leader, Rep. Yun Jae-ok, stated the previous date was “ as well late.”

“Given the present high degree of interest of the public, especially regarding lawmakers, it’s not appropriate to enforce the law 6 months thereafter after the promulgation,” stated the party leader past week, while proposing a fast-tracked version of the bill last week. 

The “public interest” refers to a high-profile scandal surrounding Kim Nam-guk – who was alleged to have cashed out $4.5 Million in digital currency at Wemix exchange early a year ago. The same lawmaker backed legislation in 2022 to defer a law implementing a 20 percent financial resources profits tax on digital currencies from 2023 to 2025, though he’s rejected there being any conflicts of interest. 

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Nevertheless, the revelations invited investigations into the previous Democratic Party lawmaker for suspected campaign finance violations, tax portals, and criminal possession of crypto. 

Which Politicians Hold Cryptocurrency in America?

Lawmakers in the  United States are already required to disclose their cryptocurrency and Bitcoin (BTC) holdings, between whom only a small number hold any digital assets. Senator Cynthia Lummis revealed in 2021 that she owns 5 Bitcoin – 3 of which she purchased for just $300. 

Senator Ted Cruz has likewise confessed to owning a little greater than 2 BTC, respecting the investment as a longstanding inflation hedge and decentralized governance. The previous  30 days, he stated that he has a standing order to buy more Bitcoin (BTC) every Monday morning. 

“I like Bitcoin (BTC) for the same reason that the Chinese communist Government doesn’t like bitcoin,” he stated. “They do not like Bitcoin (BTC), and they banned it because they can’t control it.” 


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