• South Korea’s National Assembly has passed a bill to require lawmakers and high-ranking public officials to report on their crypto assets.
• The bill comes in response to a scandal involving some National Assembly members moving large amounts of cryptocurrency.
• The Kim Nam-guk Prevention Law obligates all crypto holdings over $760 in wealth reporting by senior officials, just like cash, stocks, bonds, gold and other assets.
South Korea Passes Crypto Disclosure Bill
The South Korean government is taking steps towards the regulation of cryptocurrencies with new laws that require officials to report their crypto holdings. The National Assembly unanimously passed a bill that obligates lawmakers and high-ranking public officials to disclose information about their cryptocurrency assets.
Background of Legislation
The new legislation was prompted by a major scandal involving some National Assembly members who moved large amounts of cryptocurrency without proper disclosure. In response, the South Korean government created the Kim Nam-guk Prevention Law, which requires all crypto holdings over $760 in wealth reporting by senior officials such as members of the National Assembly or high-ranking public officials.
Amendments Approved
The amendments to both the National Assembly Act and the Public Service Ethics Act were approved during a plenary session on May 25th with 269 votes from 269 lawmakers present for the former and 268 votes from 268 lawmakers present for the latter. The amendment to the National Assembly Act officially places cryptocurrency in the list of registered property by lawmakers while also obligating high-ranking public officials to disclose their cryptocurrency assets.
Enforcement Date
Initially, it was expected that this law would come into effect in December 2023 after a six month grace period, but People Power Party Representative Yun Jae-ok has urged for an earlier enforcement date of July 2021.
Conclusion
By passing this bill, South Korea is taking steps towards more transparency when it comes to cryptocurrency transactions involving public figures or bureaucrats and will hopefully prevent future scandals related to undisclosed crypto holdings or insider trading activities