In a significant move towards transparency, South Korean officials, numbering nearly six thousand, will be required to disclose their crypto holdings publicly starting in 2024. The Ministry of Personnel Management announced that this information will be available through the Public Official Ethics System.
Enhancing Transparency: Public Access to Officials’ Crypto Declarations
Starting June 2024, information on the private crypto holdings of government officials will be accessible through the Public Official Ethics System. This marks a departure from the previous practice where some civil servants disclosed their crypto holdings in official gazettes or ministry and parliamentary websites. The move aims to provide Korean citizens with access to declarations from at least 5,800 officials.
Streamlining Reporting: Crypto Exchanges to Launch Information Provision Systems
To simplify the registration of information about crypto holdings, five major South Korean crypto exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—will launch separate “information provision systems” from June 2024.
Legislative Response to Concerns: Mandatory Disclosure After Controversial Crypto Holdings
The push for mandatory disclosure follows a controversy involving a Democratic Party member, Kim Nam-kuk, who faced scrutiny for once holding at least $4.5 million in Wemix (WEMIX) tokens developed by South Korean blockchain game developer Wemade. The incident raised concerns over potential conflicts of interest, insider information use, and money laundering.
Political Accountability: Legislative Amendments and Party Requirements
In response to the controversy, South Korea’s National Assembly unanimously voted to amend the National Assembly Act and the Public Service Ethics Act, making it mandatory for civil servants to disclose their crypto assets. Additionally, in November, the Democratic Party of Korea, holding a majority in the National Assembly, mandated its prospective candidates to disclose their digital asset holdings on party profiles.
This move towards transparency reflects South Korea’s commitment to accountability and preventing potential misuse of crypto assets among public officials.
