• South Korean lawmakers have passed a law requiring officials to disclose their cryptocurrency holdings.
• This new rule was driven by concerns of potential conflicts of interest.
• The Kim Nam-kuk Prevention Act amends the National Assembly Act and the Public Service Ethics Act, and will extend to other high ranking government officials as well.
South Korea Lawmakers Pass Law for Crypto Disclosures
South Korea’s National Assembly has passed a law that will require government officials to report their cryptocurrency holdings, local outlet News1 reported on Thursday. This amendment to the National Assembly Act and the Public Service Ethics Act, called the “Kim Nam-kuk Prevention Act,” was unanimously approved with no dissenting votes.
The passing of this law is largely attributed to suspicions that former Democratic Party lawmaker Kim Nam-kuk had up to 6 billion won ($4.5 million) worth of crypto assets, which raises conflict of interest warnings in regards to public service ethics. Lawmakers have called for this bill to take effect within two months from its passing date.
Requirements Under New Law
Under this new law, all members of South Korea’s National Assembly will be required to disclose their cryptocurrency holdings in addition to other private interests they must report on an annual basis. In addition, other high ranking government officials are also subject to this requirement.
Concerns Over Conflict Of Interest
The main concern behind this new legislation is preventing potential conflicts of interest due to undisclosed crypto assets held by government officials. By requiring disclosure for all holders of cryptocurrencies, it can help ensure that public office is being used appropriately without any personal financial benefit or gain involved in decision making processes related to policy or legislation affecting the nation and its people.
Timeline For Implementation
The timeline for implementation has not yet been specified but lawmakers have requested it become effective within two months after its passage date on Thursday May 25th 2023 at 1:52 pm UTC .