Report: South Korea's ruling party wants crypto disclosure guidelines to take effect sooner

By: Henry Felix

Report: South Korea's ruling party wants crypto disclosure guidelines to take effect sooner

May 24, 2023 6:04 AM

The proposed legislation would require top government officials and parliamentarians to reveal any personal cryptocurrency holdings worth more than $760.


According to the country's ruling party's floor leader, a new bill requiring South Korean politicians and high-ranking government officials to register their cryptocurrency holdings should go into force within the next two months.


Yonhap News, a Korean news outlet, reported→ on May 23 that Yun Jae-ok, a representative for the People Power Party (PPP), had complained that the December rollout date for new crypto-declaring guidelines wasn't soon enough.


Furthermore, Yun Jae-ok stated that the law required further amendment and a new clause before it could be voted on.


“1/️ The South Korean National Assembly is debating a critical revision to the 'Public Official Ethics Act' today. This would require public officials, including Senators, to report their cryptocurrency holdings. Tiger Research (@Tiger_Research_) May 23, 2023


"Based on the present elevated state of public interest, particularly among lawmakers," Yun Jae-ok stated, "it is not acceptable for authorities to enforce the law six months following its introduction."


On May 26, the updated law will be brought to the floor for a vote.


South Korean government personnel are already required to register stocks, bonds, jewels, given memberships, and other possessions worth more than $760 (1 million Korean won) under current guidelines, but no similar declaration is currently required for cryptocurrencies and digital assets.


The new bill was suggested in the aftermath of a colossal incident regarding government employee Kim Nam-kuk, who was suspected of disposing of over $4 million in cryptocurrency holdings before the country implemented its "Travel Rule" in March.


Following the issue, Kim elected to resign from the opposing Democratic Party on May 15.


South Korean officials raided→ the offices of two local cryptocurrency exchanges, Upbit and Bithumb, on the same day Kim resigned, as part of their investigations into Kim's suspected financial misdeeds.


Since the collapse→ of Do Kwon's Terra ecosystem in May last year, South Korean officials have accelerated regulation of cryptocurrencies and similar digital assets.


The most recent legislative action has been the launch of a broad new measure announced in April 2023 that would impose stiffer penalties for crypto-related offenses, including higher fines and jail sentences ranging from one year to life.