South Korea Mandates Disclosure of Cryptocurrency Holdings in Public Service Ethics Act Amendment #SKCryptoDisclosure

South Korea Mandates Disclosure of Cryptocurrency Holdings in Public Service Ethics Act Amendment #SKCryptoDisclosure


The South Korean government is drafting an amendment to require public officials to disclose their cryptocurrency holdings, in response to concerns about officials abusing their positions and using digital assets for proliferation or concealment.

The South Korean Government has drafted an amendment to an existing law, which would require public officials to disclose their digital currency holdings. 

According to the draft, public officials are abusing their positions, likewise as the fact that the present Public Service Ethics Act does not in particular  require them to disclose their digital investment holdings in addition to real estate, cash, or stock holdings worth over $7,500. 

It requested that,

” In contrast to  deposits and securities, all virtual assets must be registered regardless of the amount.”

In addition, there are intends to specify relevant details such as the method of calculating or displaying the value of a digital asset.

There is likewise a note on receiving “information from the virtual investment operator with the consent of the person” when registering property. 

The draft, submitted on May 19, is as of now in the ‘committee review’ stage. It should be submitted for a final vote in a plenary session on May 25.

Abusing official position

Digital assets are not subject to registration and reporting, the draft says. 

Therefore,

Certain public officials are “abusing a superior position in accessing numerous financing information to unfairly protect property. There is concern that it can be used as a tool for proliferation or concealment.”

The draft describes that,

” Recently, it was found that an active member of the National Assembly has a large amount of virtual assets, but it is missing from the disclosure details of the lawmaker’s property, which is pointed out as a loophole in the law.”

As already  stated in early May, lawmaker Kim Nam-kuk found himself in hot water after being accused of performing suspicious cryptocurrency trades worth about KRW 6 Billion ($4.5 million). 

The politician was accused of withdrawing his cryptocurrency holdings from an exchange shortly before the country implemented the so- was known cryptocurrency travel rule in March 2022, which obliged owners of cryptocurrency assets to carry out real-name transactions. 

If true, this may constitute insider trading, implying that he acted on the knowledge of a next legal change.

Kim argued that he had not cashed out but transferred cryptocurrency to a different exchange – but likewise, it’s worth noting that, that he was not required to report his cryptocurrency holdings under the disclosure obligation of the country’s public service ethics act.

As the so- was known ‘Coin Gate’ fallout continued, it was informed in mid-May that the National Assembly’s Political Affairs Committee co-created a resolution that would create a “voluntary” system whereby officials are requested to report cryptoasset holdings – which, numerous opined, could become a mandatory protocol.

And numerous claimed that Kim may not be the only MP involved in Coin Gate: MP Yoon Han-hong, a member of the Political Affairs Committee, was known for a probe into “all 300” sitting MPs.

Just days ago, the Justice Ministry hit out at asserts that Minister Han Dong-hoon “refused to disclose information” about whether or not he owned cryptocurrency. It argued that “the cryptoasset holding status of public officials who work with cryptoasset [regulation]” and all “public officials belonging to the Ministry of Justice” is checked bi-annually.  

It had begun to check officials in this manner in 2021, it stated, with the most up-to-date check conducted in January this year.

Learn more: 

– South Korean Prosecutors Buy Blockchain Tech Analytics Tools in Bid to Bust ‘ Cryptocurrency Money Laundering’
– South Korean Regulating authority ‘Not Meeting SEC to Talk About Cryptocurrencies  Securities Status’

– South Korean Cryptocurrency Exchanges Set to Renew Banking Deals
– Samsung and Bank of Korea Partner for In-Depth Offline CBDC Payments Research

Source

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