South Korea’s ruling party has was known for early enforcement of the law that seeks the country’s lawmakers and high-level Government officials to declare their cryptocurrency-related assets.
The proposed bill would require local officials and lawmakers to declare all personal cryptocurrency holdings over 1 Million Korean won (worth around $760). The move was prompted by a major cryptocurrency scandal involving a previous lawmaker of the opposing party.
Calls to Expedite Bill
A report by Yonhap news agency suggests that People Power Party’s floor leader unveiled a bill last Friday proposing all public officials and candidates disclose their cryptocurrency holdings.
The original bill was previously scheduled for implementation in December in the year. Nonetheless, Rep. Yun Jae-ok, a third-term lawmaker, who was elected as the new floor leader of the conservative PPP the previous 30 days, deemed the set date to be “ as well late” and also mentioned that the bill has to be amended to add a clause moving up the enforcement.
The lawmaker said,
“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.”
Yun further revealed that he requested the leader of the Public Administration Committee to propose a modified version of the law. The bill is reportedly scheduled to be put to a vote on May 26.
The most recent development emerges on the heels of the ongoing scandal surrounding previous Democratic Party lawmaker Kim Nam-kuk who has been at the center of controversy over his digital currency investments. He is as of now under investigation by local prosecutors for alleged campaign finance violations and tax portals, likewise as for hiding criminal proceeds of his cryptocurrency possessions and transactions.
Kim announced leaving the party past week and continued to sustain his innocence. Although while responding to states, the now-independent lawmaker asserted that he was not required to disclose activities surrounding his cryptocurrency assets and rejected liquidating his holdings.
As part of the investigation against the politician, authorities raided the offices of prominent cryptocurrency exchanges – Upbit and Bithumb.
South Korea’s Regulatory Standpoint
South Korean lawmakers have increased regulatory scrutiny of the crypto- investment industry after the collapse of the Terra (LUNA) ecological system crypto tokens last May.
As a result, the legislators passed a 1st phase review of proposed regulations that offers the Financial Services Commission authority to investigate and monitor financial activity related to the investment class with stipulations ranging from governing the sale, storage, and trading. Consumer safety and compliance reporting were some of the aspects that were particularly stressed.
If passed, the bill would require digital investment service providers to distinguish internal holdings from consumer assets, carry insurance and maintain reserves in the event of non-market-related losses.