There have been calls for increased accountability and transparency among public authorities following the Coin Gate scandal that shook the South Korean financial system. The nation’s main financial regulator has responded by putting in place regulations that call for all of its staff to declare any cryptocurrencies they may own.
Coin Gate Scandal Leads to Collapse of South Korean Regulator
One lawmaker was suspected of selling tokens prior to the introduction of new cryptocurrency legislation, and the incident includes accusations of insider trading among lawmakers. Later it was discovered that the politician was, at the time, a member of a parliamentary subcommittee on crypto.
The fallout from the incident has prompted MPs, regulators, and government employees to press for transparency once more. As a result of this, the Financial Services Commission (FSC), which is in charge of overseeing South Korea‘s cryptocurrency market and checking up on local crypto exchanges, amended its staff code of conduct.
Updated Employee Code of Conduct
The updated code now forbids employees who work with virtual assets from engaging in cryptocurrency trading using confidential information acquired while carrying out their duties. Moreover, employees who hold tokens now have an additional obligation to inform the FSC of their ownership.
Employees must complete a form called Report on the Possession of Virtual Assets in order to comply with the new rules. The form requires that employees list the kind of virtual assets they own, when they bought them, and how many tokens they now possess. Public officials who are currently doing virtual asset-related duties, as well as those who completed those tasks within the preceding six months, are subject to the ban on cryptocurrency trading.
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