South Korean Legislators Pass Groundbreaking Bill Mandating Crypto Disclosure
The bill was unanimously supported by all legislators at the hearing.
A landmark development in the realm of cryptocurrency regulation has occurred in South Korea as the government presses forward with legislation necessitating public officials to publicly disclose their Bitcoin (BTC) and other cryptocurrency holdings.
In a move intended to foster transparency and discourage potential misuse of inside information, the National Assembly of South Korea has passed a crypto declaration bill.
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According to the news agency News1, the development was unanimously supported in a plenary session on May 25th.
As per the report, this new mandate is a product of amendments to two key acts – the National Assembly Act and the Public Service Ethics Act. The modification to the former secured overwhelming approval, with 269 out of 269 present lawmakers casting their votes in its favor. Concurrently, the changes to the Public Service Ethics Act received 268 affirmative votes from 269 lawmakers.
The provisions made by these changes are both noteworthy and instrumental. The amendment to the National Assembly Act, passed on May 22nd, has granted cryptocurrencies the status of registered property for lawmakers.
Similarly, the revision to the Public Officials Ethics Act introduces an obligation for not only high-ranking officials but also members of the National Assembly to disclose their cryptocurrency holdings.
A recent incident involving Kim Nam-kuk, a former member of the main opposition Democratic Party in South Korea, underscored the urgency of this legislation. Early in May, Kim was discovered to have held around $4.5 million in crypto assets on the Wemix exchange. This revelation immediately sparked concerns about potential conflicts of interest, money laundering, and possible abuse of insider information.
Earlier this week, the news broke that South Korea’s ruling party is pushing for the immediate enactment of the crypto asset disclosure bill.
The recent amendments to the National Assembly Act and the Public Service Ethics Act signify a significant shift in South Korea’s stance towards cryptocurrency. By obligating officials to report their crypto assets, the South Korean government is sending a clear message of transparency and accountability in the digital asset space.