May 25, 2023 at 13:07 GMTModified date: August 9, 2023 at 09:41 GMT
May 25, 2023 at 13:07 GMT

South Korea Officials Must Report Crypto Holdings

The government has passed the “Kim Nam-guk Prevention Law”, that requires lawmakers and high-ranking officials to report their cryptocurrency holdings

South Korea Officials Must Report Crypto Holdings

The “Kim Nam-guk Prevention Law”: An Unprecedented Step Forward

In the wake of a scandal involving National Assembly members and large crypto transactions, South Korea has taken decisive action. The government has passed a new law, dubbed the “Kim Nam-guk Prevention Law”, that requires lawmakers and high-ranking officials to report their cryptocurrency holdings, including Bitcoin (BTC).

On May 25, South Korea’s National Assembly unanimously passed the bill during a plenary session, according to a News1 report. The bill makes significant amendments to the National Assembly Act and the Public Service Ethics Act. Both were approved unanimously by all present lawmakers – a testament to the government’s commitment to cryptocurrency regulation.

Unveiling Cryptocurrency Holdings

Under the approved amendment, cryptocurrency has now been officially placed on the list of registered property by lawmakers. This means that both high-ranking officials and members of the National Assembly must disclose their cryptocurrency assets, bringing a new level of transparency to the burgeoning crypto space.

This legislative move comes as a direct response to a major scandal involving National Assembly members found moving large amounts of cryptocurrency. The former member of the main opposition Democratic Party in South Korea, Kim Nam-guk, was found to hold at least $4.5 million in crypto assets at Wemix exchange in early May. This revelation sparked concerns about potential money laundering, conflicts of interest, and the misuse of insider information.

The Kim Nam-guk Prevention Law

The South Korean government’s swift response led to the establishment of the “Kim Nam-guk Prevention Law.” The key aspect of this legal change is that all crypto holdings over $760 must be included in the wealth reporting by senior officials. This now places cryptocurrency on the same level as cash, stocks, bonds, gold, and other assets in terms of wealth reporting.

The legislation was initially slated to take effect in December 2023 following a six-month grace period. However, some lawmakers, including People Power Party’s Representative Yun Jae-ok, are advocating for an earlier enforcement, potentially by July.

Implications and Future Trends

These legal changes signify South Korea’s serious approach to cryptocurrency regulation and transparency. It further underscores the country’s commitment to holding its officials accountable, ensuring that they are not using their positions to manipulate the crypto market.

With this bill, South Korea takes a bold step toward a new era of cryptocurrency transparency. It sets a precedent for other countries to possibly follow, further integrating cryptocurrencies into traditional financial systems while mitigating potential abuses. It will undoubtedly be interesting to observe how this law influences global cryptocurrency regulation trends moving forward.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. Always do your research before investing in cryptocurrencies.