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South Korea’s PPP Aims to Accelerate Legislation Mandating Disclosure of Lawmakers’ Cryptocurrency Assets
The ruling party in South Korea has advocated for the prompt implementation of legislation that mandates the nation’s lawmakers and senior government officials to declare their cryptocurrency-related assets.
The suggested legislation would obligate local officials and lawmakers to report all personal cryptocurrency holdings exceeding 1 million Korean won (approximately $760). This initiative was triggered by a significant cryptocurrency scandal involving a former lawmaker from the opposition party.
Urgency to Advance the Bill
A report from Yonhap news agency indicates that the floor leader of the People Power Party introduced a bill last Friday that calls for all public officials and candidates to disclose their cryptocurrency holdings.
The initial bill was slated for enforcement in December of this year. However, Rep. Yun Jae-ok, a third-term lawmaker who was elected as the new floor leader of the conservative PPP last month, considered the proposed timeline to be “too late” and suggested that the bill should be revised to include a provision for earlier enforcement.
The lawmaker stated,
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“Given the current high level of public interest, especially regarding lawmakers, it’s not appropriate to enforce the law six months later after the promulgation.”
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Yun also disclosed that he requested the leader of the Public Administration Committee to present a revised version of the law. The bill is reportedly set to be voted on May 26.
This latest development comes amid the ongoing scandal involving former Democratic Party lawmaker Kim Nam-kuk, who has been embroiled in controversy regarding his cryptocurrency investments. He is currently under investigation by local prosecutors for alleged violations related to campaign financing and tax matters, as well as for concealing criminal proceeds from his cryptocurrency holdings and transactions.
Kim announced his departure from the party last week and continues to assert his innocence. In response to the allegations, the now-independent lawmaker claimed that he was not obligated to disclose activities related to his cryptocurrency assets and denied having liquidated his holdings.
As part of the investigation into the politician, authorities conducted raids on the offices of major cryptocurrency exchanges – Upbit and Bithumb.
Regulatory Perspective in South Korea
Following the collapse of the Terra ecosystem tokens last May, South Korean lawmakers have intensified regulatory oversight of the cryptocurrency asset sector.
Consequently, legislators have passed a preliminary review of proposed regulations that would grant the Financial Services Commission the authority to investigate and oversee financial activities associated with this asset class, with provisions covering the sale, storage, and trading of cryptocurrencies. Consumer protection and compliance reporting were highlighted as particularly important aspects.
If enacted, the bill would require digital asset service providers to differentiate between their internal holdings and consumer assets, obtain insurance, and maintain reserves to cover non-market-related losses.
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