On Could 25, the South Korean Nationwide Meeting handed the “Kim Nam Guk Prevention Regulation,” which requires legislators and high-ranking authorities officers to reveal their cryptocurrency holdings.
Based on News1, the amendments to the Nationwide Meeting Regulation had been accepted with broad assist, guaranteeing that cryptocurrencies are included within the legislators’ register of personal pursuits.
This new regulation goals to advertise integrity and transparency within the authorities by addressing considerations in regards to the potential misuse of cryptocurrencies by lawmakers and public officers.
Moreover, the Public Officers Ethics Act modification additionally mandates high-ranking public officers, together with legislators, to register their cryptocurrency belongings.
These measures had been taken in response to suspicions and controversies surrounding Consultant Kim Nam Guk, a member of the Democratic Occasion, who was accused of proudly owning cryptocurrencies valued at as much as 6 billion received (over $4.5 million). This raised considerations about doable conflicts of curiosity and insider buying and selling actions.
Leaders from totally different political events, together with the Individuals Energy Occasion and the Democratic Occasion of Korea, expressed settlement on the necessity to cross this regulation throughout a gathering with the Speaker of the Nationwide Meeting.
Subsequently, it’s anticipated that with the approval of this regulation, transparency concerning the cryptocurrency holdings of public officers will grow to be a actuality in South Korea, strengthening public belief in establishments whereas enhancing cryptocurrency regulation.
South Korea continues to make progress in cryptocurrency regulation
In April 2023, the South Korean Nationwide Meeting handed the cryptocurrency regulation invoice, overcoming probably the most vital preliminary impediment earlier than turning into regulation.
Hwang Suk-jin, a Particular Committee on Digital Belongings of the Individuals Energy Occasion member, said that following the Nationwide Meeting’s approval, he expects it to grow to be regulation within the first half of the yr. It solely requires approval from the legislative and judicial committees.
The invoice requires cryptocurrency service suppliers to maintain customers’ funds separate and safe, avoiding mixing them with their very own funds. This has been a controversial difficulty that a number of nations are together with of their laws following the alleged embezzlement by Sam Financial institution-Fried on the now-bankrupt alternate, FTX.
Likewise, the invoice establishes penalties reminiscent of imprisonment and fines as much as 5 occasions the illicit features for individuals who fail to adjust to the brand new laws. Moreover, courts might impose most sentences reminiscent of life imprisonment in circumstances the place reported losses to victims exceed $3.73 million.