According to the floor leader of the country’s ruling party, a new rule that will likely go into effect within the next two months would make it mandatory for politicians and high-ranking government employees in South Korea to reveal their holdings of cryptocurrencies like bitcoin and ethereum.
Yonhap News, a publication in South Korea, reported on May 23 that Yun Jae-ok, a representative for the People’s Power Party, stated that the projected date for the introduction of the new crypto declaration regulations, which is now set for December, is not rapid enough. In addition, Yun Jae-ok stated that the measure is in need of additional revisions and calls for the addition of a new section in order to bring the date of enforcement up to date prior to the bill being put up for a vote.
On May 26, the revised law will likely be debated and voted on for the first time in the chamber. According to the regulations that are now in place, officials working for the South Korean government are obligated to disclose any holdings that are worth more than 1 million Korean won ($760), including stocks, bonds, jewels, gifted memberships, and other assets; however, such declaration is not currently needed for cryptocurrencies and digital assets.
The government official Kim Nam-kuk, who was accused of liquidating more than $4 million worth of crypto assets before the country began implementing its “Travel Rule” in March, was the subject of a huge scandal that led to the introduction of the new bill that was introduced in response to the issue. As a result of the scandal, Kim made the decision to leave the Democratic Party on May 15 and resign from his position.
As part of their investigations into allegations that Kim had engaged in improper financial activities, South Korean officials conducted raids at the offices of two local cryptocurrency exchanges on the same day that Kim tendered his resignation. These exchanges are Upbit and Bithumb. Since the failure of Do Kwon’s Terra ecosystem in May of the previous year, the government of South Korea has moved quickly to hasten the process of regulating cryptocurrencies and other similar digital assets.
The most recent action taken by legislators was the introduction of a comprehensive new bill that was submitted in April. This bill would aim to impose tougher punishments for crimes related to cryptocurrencies, including increased fines and sentences that range from one year to life in prison. The bill was introduced. According to Yun Jae-ok, “given the current high level of public interest, particularly regarding lawmakers, it’s not appropriate to enforce the law six months later after it was promulgated.”
News on SNBC13.com
