South Korea Plans to Make Crypto Asset Holdings of Officials Public by 2024

Crypto News- Commencing in 2024, almost six thousand South Korean officials will be obligated to publicly disclose their cryptocurrency holdings. The Ministry of Personnel Management in the country made the announcement on December 27, revealing that details about crypto assets owned privately by government officials will now be incorporated into the Public Official Ethics System.

South Korea Plans to Make Crypto Asset Holdings of Officials Public by 2024

While certain Korean civil servants had previously revealed their cryptocurrency holdings through the government’s official gazette or on ministry and parliamentary websites, the newly established Public Official Ethics System will grant Korean citizens access to declarations from a minimum of 5,800 officials in the year 2024. Starting from June 2024, major South Korean cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—will implement distinct “information provision systems” to simplify the process of registering cryptocurrency holdings.

In May 2023, Democratic Party member Kim Nam-kuk faced scrutiny for once holding at least $4.5 million in Wemix (WEMIX) tokens, developed by South Korean blockchain game developer Wemade. Kim’s ownership of Wemix sparked significant concerns regarding potential conflicts of interest, insider trading, and even money laundering.

In response to this incident, the National Assembly of South Korea unanimously passed amendments to the National Assembly Act and the Public Service Ethics Act in June 2023, making it mandatory for civil servants to disclose their cryptocurrency assets.

Further, in November, the Democratic Party of Korea, which holds 167 out of 300 seats in the National Assembly, mandated that prospective candidates disclose their digital asset holdings on their party profiles.