Politicians in South Korea are now required to disclose their cryptocurrency holdings just like they do with their cash, equities, bonds, or gold.
The National Assembly of South Korea has formally approved a bill into law requiring lawmakers and government officials to declare their possession of cryptocurrency.
The new law is a response to an encounter that recently surfaced about a lawmaker who was accused of utilizing cryptocurrencies to allegedly violate campaign finance laws.
“Kim Nam-guk Prevention Law”
The National Assembly Act and Public Service Ethics Act amendments were approved on May 22 with 269 votes for each and 268 votes for each, respectively, according to a report from the local news organization News1.
Cryptocurrencies are now listed as “private interests” and registered properties of lawmakers under the National Assembly Act adaptation. On the same day, the Public Administration and Security Committee approved an amendment to the Public Officials Ethics Act that requires both National Assembly members and high-ranking officials to declare their holdings.
The bill was supposed to go into effect in December, but it shifted earlier to this month after Rep. Yun Jae-ok, the newly elected head of the conservative People Power Party, declared that the earlier deadline was “too late.”
The party leader last week proposed a fast-tracked version of the measure, saying, “Given the current high level of public interest, especially regarding lawmakers, it’s not appropriate to enforce the law six months later after the promulgation.”
The term “public interest” refers to a well-known scandal involving Kim Nam-guk, who is accused of withdrawing $4.5 million in cryptocurrencies from the Wemix exchange at the beginning of last year. Although he has denied any conflicts of interest, the same lawmaker supported legislation in 2022 to push back the implementation of a 20% capital gains tax on cryptocurrency from 2023 to 2025.
However, the findings prompted inquiries into the former Democratic Party representative for potential violations of the laws governing campaign funding, tax avoidance, and crypto possession.
Which Politicians Hold Cryptocurrency in the United States?
Only a small percentage of US lawmakers, who are already compelled to report their cryptocurrency and Bitcoin holdings, actually own any digital assets. In 2021, Senator Cynthia Lummis declared that she was the owner of 5 Bitcoin, three of which she had purchased for just $300.
Senator Ted Cruz has also admitted to owning somewhat more than 2 BTC, praising the asset for its decentralized governance and long-term inflation hedge. In the previous month, he claimed to have a standing order to purchase more Bitcoin each Monday morning.
The Chinese communist government doesn’t like Bitcoin, and I prefer Bitcoin for the same reason, he claimed. “They don’t like Bitcoin and they banned it because they can’t control it.”