Starting in 2024, approximately 5,800 South Korean government officials will be required to publicly reveal their cryptocurrency holdings.
The Ministry of Personnel Management in South Korea announced on December 27th that information regarding government employees’ private cryptocurrency assets will be incorporated into the Public Official Ethics System.
In the past, some Korean civil servants voluntarily disclosed their cryptocurrency holdings in the government’s official gazette or on the websites of various ministries and parliamentary chambers.
However, with the implementation of the Public Official Ethics System, this information will become accessible to Korean citizens, providing transparency regarding the financial interests of government officials.
From June 2024 onwards, five major South Korean cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, will introduce separate “information provision systems” to streamline the process of registering information about cryptocurrency holdings.
This move aims to facilitate compliance with the new disclosure requirements and enhance the accessibility of this critical information.
The need for mandatory disclosure of cryptocurrency assets among government officials gained traction following a scandal involving Kim Nam-kuk, a member of the Democratic Party.
In May 2023, it was revealed that Kim had held at least $4.5 million worth of Wemix (WEMIX) tokens, which were developed by the South Korean blockchain game developer Wemade.
This revelation raised serious concerns about potential conflicts of interest, insider trading, and money laundering involving public officials.
In response to this incident, South Korea’s National Assembly took decisive action by amending both the National Assembly Act and the Public Service Ethics Act.
These amendments were passed unanimously, establishing the requirement for civil servants to disclose their cryptocurrency assets publicly.
Furthermore, in November, the Democratic Party of Korea, which holds a majority of seats in the National Assembly, extended the obligation to disclose digital asset holdings to its prospective candidates.
This move signifies a commitment to transparency and accountability within the political landscape of South Korea.
In conclusion, South Korea is taking significant steps to enhance transparency and integrity among government officials and political candidates by mandating the disclosure of cryptocurrency holdings.
This move is a response to recent controversies and reflects a broader global trend towards regulating and monitoring the cryptocurrency market.