South Korea Passes Regulation Requiring Disclosure of Cryptocurrency Holdings by Officers

On Could 25, the South Korean Nationwide Meeting handed the “Kim Nam Guk Prevention Regulation,” which requires legislators and high-ranking authorities officers to reveal their cryptocurrency holdings.

In response to News1, the amendments to the Nationwide Meeting Regulation have been authorised with broad help, making certain that cryptocurrencies are included within the legislators’ register of personal pursuits.

This new regulation goals to advertise integrity and transparency within the authorities by addressing considerations in regards to the potential misuse of cryptocurrencies by lawmakers and public officers.

Moreover, the Public Officers Ethics Act modification additionally mandates high-ranking public officers, together with legislators, to register their cryptocurrency property.

These measures have been taken in response to suspicions and controversies surrounding Consultant Kim Nam Guk, a member of the Democratic Social gathering, who was accused of proudly owning cryptocurrencies valued at as much as 6 billion gained (over $4.5 million). This raised considerations about potential conflicts of curiosity and insider buying and selling actions.

Leaders from completely different political events, together with the Individuals Energy Social gathering and the Democratic Social gathering of Korea, expressed settlement on the necessity to go this regulation throughout a gathering with the Speaker of the Nationwide Meeting.

Due to this fact, it’s anticipated that with the approval of this regulation, transparency relating to the cryptocurrency holdings of public officers will turn into a actuality in South Korea, strengthening public belief in establishments whereas enhancing cryptocurrency regulation.

South Korea continues to make progress in cryptocurrency regulation

In April 2023, the South Korean Nationwide Meeting handed the cryptocurrency regulation invoice, overcoming probably the most important preliminary impediment earlier than changing into regulation.

Hwang Suk-jin, a Particular Committee on Digital Belongings of the Individuals Energy Social gathering member, acknowledged that following the Nationwide Meeting’s approval, he expects it to turn into regulation within the first half of the yr. It solely requires approval from the legislative and judicial committees.

The invoice requires cryptocurrency service suppliers to maintain customers’ funds separate and safe, avoiding mixing them with their very own funds. This has been a controversial difficulty that a number of nations are together with of their laws following the alleged embezzlement by Sam Financial institution-Fried on the now-bankrupt trade, FTX.

Likewise, the invoice establishes penalties equivalent to imprisonment and fines as much as 5 occasions the illicit beneficial properties for many who fail to adjust to the brand new laws. Moreover, courts might impose most sentences equivalent to life imprisonment in circumstances the place reported losses to victims exceed $3.73 million.