The ruling party of South Korea has urged for the quick implementation of a law that requires lawmakers and high-level officials to disclose their cryptocurrency holdings.
The bill, which proposes the declaration of personal crypto assets over 1 million Korean won (approximately $760), was introduced following a major cryptocurrency scandal involving a former member of the opposing party.
Call to Speed Up the Bill
A Yonhap news agency report states that the floor leader of the People Power Party unveiled a bill on Friday, which demands that all public officials and candidates reveal their crypto holdings.
The original bill was supposed to be implemented in December of this year. However, Rep. Yun Jae-ok, the third-term lawmaker elected as the new leader of the conservative PPP last month, believes that the set date is “too late” and has called for an amendment to speed up enforcement.
The lawmaker said,
“Given the current high level of public interest, especially regarding lawmakers, it’s not appropriate to enforce the law six months later after the promulgation.”
Yun has requested the leader of the Public Administration Committee to propose a modified version of the law. The bill is scheduled to be voted on May 26.
The latest development comes amid an ongoing scandal surrounding former Democratic Party lawmaker Kim Nam-kuk, who is being investigated by local prosecutors for alleged campaign finance violations, tax evasion, and concealing criminal proceeds from his crypto transactions and holdings.
As part of the investigation, authorities raided the offices of two major crypto exchanges – Upbit and Bithumb.
Regulatory Developments in South Korea
South Korean lawmakers have been looking to tighten regulatory scrutiny of the crypto industry since the collapse of the Terra ecosystem tokens in May last year.
The legislators passed a first phase review of proposed regulations that gives the Financial Services Commission authority to investigate and monitor financial activity related to cryptocurrencies, with specific provisions governing sale, storage, and trading. Consumer protection and compliance reporting are among the key aspects highlighted.
If passed, the bill would require digital asset service providers to differentiate between their internal holdings and customer assets, provide insurance, and maintain reserves in the event of non-market-related losses.