South Korean crypto law tightens for officials

South Korean lawmakers and policy makers might have to declare their cryptocurrency portfolio if a new bill is implemented in the country. The new bill that has been proposed will enforce officials in high-ranking positions in the government to state their crypto holdings.

According to Korean news publication Yonhap News, Yun Jae-ok, the People Power representative has given a date to introduce the new legislation. According to the rep, December – the original date for crypto declaration – is too far away. The bill will be put to vote later this week. Yun Jae-ok stated that the date of enforcement should be brought forward before the vote.

The new bill is scheduled to be put to the floor for a vote on May 26.

1/🏛️ Today, South Korea National Assembly is discussing a crucial amendment to the ‘Public Official Ethics Act’. This would make it mandatory for public officials, including Senators, to declare their #crypto holdings.

— Tiger Research Inc. (@Tiger_Research_) May 23, 2023

Currently, those in government positions are required to declare any stock, bonds, memberships, and other holdings valued at more than 1 million Korean won ($760). As it stands, there is no requirement to declare any crypto holdings or digital assets. The proposal for the new bill comes following misconduct by Kim Nam-kuk, a government official, who was accused of liquidating over $4 million of cryptocurrency and digital assets. The scandal took place before South Korea implemented and enforced a rule in March that would ban major amounts of funds from leaving the country in digital form. Kim has since stepped down from his position in government.

Two local cryptocurrency exchanges have recently been raided by the South Korean police force. Upbit and Bithumb are alleged to have been involved in Kim’s misconduct and are currently under investigation.

South Korea crypto legislation tightens

Part of the new bill is to help introduce legislation to the country, while reducing the risk and “conflict of interest” in the space: As Tiger Research noted:

“The proposed amendment has broader implications, potentially enhancing transparency in public service and minimizing conflicts of interest in crypto-related #legislation. This marks a significant step in integrating emerging tech into official ethical codes.”