South Korea has recently passed into law the requirement that government officials must disclose any cryptocurrency holdings they have. The National Assembly’s move, known as the “Kim Nam-guk Prevention Law”, was approved in plenary on Thursday, 25th May, 2023.
The law was prompted by the scandal surrounding Kim Nam-kuk, a former opposition party member, who was discovered to have held crypto assets worth roughly $4.5 million on the Wemix exchange. The revelations sparked allegations of money laundering.
The amendments to the National Assembly Act and the Public Service Ethics Act now obligate public officials to declare any crypto holdings that are worth $760 or more. This includes any holdings in cash, stocks, bonds, and other assets.
The passing of this bill is seen as a step towards regulating the cryptocurrency space in South Korea. The country is quickly becoming a major force in the world of digital currencies, and this law is likely to further enhance its reputation in this sector.