South Korea Passes Bill to Make Officials Disclose Crypto Holdings
• The South Korean government is moving forward with new laws to require officials to report on their holdings of cryptocurrencies like Bitcoin (BTC).
• The Kim Nam-guk Prevention Law comes in response to a scandal involving some National Assembly members moving large amounts of crypto.
• These amendments to the National Assembly Act and Public Service Ethics Act will place cryptocurrency in the list of registered property by lawmakers and obligate high-ranking public officials as well as members of the National Assembly to disclose cryptocurrency assets.
South Korea Passes Bill for Crypto Asset Disclosure
New Amendments for Officials’ Crypto Assets
The South Korean government is taking action towards new laws that require officials to report on their holdings of cryptocurrencies such as Bitcoin (BTC). This initiative, known as the Kim Nam-guk Prevention Law, comes in response to a scandal involving some National Assembly members who moved substantial amounts of crypto. Amendments have been made both to the National Assembly Act and Public Service Ethics Act.
Amendment for Registered Property
As part of these amendments, cryptocurrency has now been placed in the list of registered property by lawmakers. As a result, high-ranking public officials and members of the National Assembly must disclose all crypto assets they possess over $760. Initially this change was set to come into effect in December 2023 after a six month grace period; however, some lawmakers have pushed for it’s enforcement by July 2021 instead.
Scandal Involving Wemix Tokens
The legal developments are a direct consequence from an earlier government scandal that involved some National Assembly members moving large amounts of cryptocurrency – specifically Wemix tokens worth at least $4.5 million held once by former member Kim Nam-kuk from main opposition Democratic Party. This raised concerns about money laundering, conflicts of interest and insider information use which provoked immediate action from the South Korean government leading up to today’s changes in law.
Unanimous Votes Passed
The bill was unanimously passed with 269 votes from 269 present during a plenary session on May 25th. Similarly, 268 votes were given out from 268 present for the amendment added onto the Public Service Ethics Act – further pushing through with obligations to report on any crypto asset ownership over $760 or risk facing punishment if found guilty otherwise.
With these recent legislative decisions being made regarding cryptocurrency asset disclosure, South Korea is currently setting an example for other countries when it comes regulations around digital currency investments held by public figures or those working closely with them – keeping any potential misuse or fraud attempts at bay under close watch every step along the way!