South Korea to Amend Public Service Ethics Act, Mandating Disclosure of Cryptocurrency Holdings
The South Korean government has drafted an amendment to an existing law, which would require public officials to disclose their cryptocurrency holdings.
According to the draft, public officials are abusing their positions, as well as the fact that the current Public Service Ethics Act does not specifically require them to disclose their digital asset holdings in addition to real estate, cash, or stock holdings worth over $7,500.
It asked that,
"Unlike deposits and securities, all virtual assets must be registered regardless of the amount."
Additionally, there are plans to specify relevant details such as the method of calculating or displaying the value of a digital asset.
There is also a note on receiving "information from the virtual asset operator with the consent of the person" when registering property.
The draft, submitted on May 19, is currently in the 'committee review' stage. It should be submitted for a final vote in a plenary session on May 25.
Digital assets are not subject to registration and reporting, the draft says.
Therefore,
Certain public officials are "abusing a superior position in accessing various investment information to unfairly protect property. There is concern that it can be used as a tool for proliferation or concealment."
The draft explains that,
"Recently, it was found that an active member of the National Assembly has a large amount of virtual assets, but it is missing from the disclosure details of the lawmaker’s property, which is pointed out as a loophole in the law."
As reported in early May, lawmaker Kim Nam-kuk found himself in hot water after being accused of performing suspicious crypto trades worth about KRW 6 billion ($4.5 million).
The politician was accused of withdrawing his crypto
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