South Korea Prepares to Take Vote on Bill Requiring Crypto Disclosures from Lawmakers
- Lawmakers in South Korea have proposed an amendment to the country’s Public Service Ethics Act following a recent scandal.
- The amendment would require lawmakers to reveal their crypto exposure if it is greater than 1 million won, or $760.
- A member of the Democratic Party, Kim Nam-kuk, is being investigated for cashing out more than $4.5 million in crypto.
- South Korea is also working on the Virtual Asset User Protection Bill, which has nine separate policies and is under first review.
South Korea was one of the first nations to take a regulated approach to cryptocurrencies, and it continues to come up with new ways to regulate the industry. Interestingly, following a recent scandal involving a local politician responsible for regulating digital assets, the country is now ready to vote on a bill that would require lawmakers to disclose their exposure to cryptocurrencies if the amount is greater than $760. An amendment has been proposed to the country’s Public Service Ethics Act.
According to the report from media outlets, government officials in South Korea will now have to disclose stocks, bonds, jewelry, gifted memberships, and other holdings worth more than 1 million Korean won, which is approximately $760 based on current prices. Interestingly, there are chances that this proposal might be turned into law considering the scandal involving lawmaker Kim Nam-kuk.
Under the current laws, no such disclosure is needed from lawmakers in South Korea. However, it is very possible for the situation to change in the near future. It seems that the scandal involving Kim has accelerated the situation, and now, the country is looking to prevent these situations from occurring in the future.
Kim is currently being investigated for cashing out more than $4.5 million in cryptocurrency last year prior to the implementation of the Flight Rule while being involved in passing legislation related to the crypto industry. He was a member of the Democratic Party and has now resigned from it following the scandal. It is imperative to note that the lawmaker was also responsible for postponing a bill that put a 20% tax on capital gains from cryptocurrencies.
Recently, authorities in South Korea raided the offices of major crypto exchanges Upbit and Bithumb, looking for transaction histories and other evidence. It is believed that Kim had his wallets on the two exchanges.
On the other hand, Kim claims that he was not required to report his crypto holdings, which were around 800,000 Wemix coins ($4.5 million), while adding that he has only transferred his assets until now and not sold anything.
Following this scandal, the authorities have proposed an amendment to current laws requiring lawmakers to declare their crypto holdings. In a notice issued by the government of South Korea, the following was stwierdził:
“Recently, it was found that an active member of the National Assembly has a large amount of virtual assets, but they are missing from the disclosure details of the lawmaker’s property, which is pointed out as a loophole in the law.”
The amendment was proposed and approved by a subcommittee on May 19, and it will be submitted for a final vote in a plenary session on May 25.
Additionally, as earlier reported by BitcoinWisdom, a woman was kidnapped and murdered from her apartment in Gangnam district, Seoul, the capital of South Korea. The death was the result of a crypto-related dispute, and as a result, the authorities are now forced to speed up crypto law.
South Korea is working on the Virtual Asset User Protection Bill, which includes nine separate crypto-related policies, and it is crucial to note that the bill is already under its first review.