South Korean Lawmakers will likely be “forced” to declare their crypto holdings following a national outcry over alleged “insider trading”.
The National Assembly’s Political Affairs Committee has co-drafted a resolution that would create a “voluntary” system requesting them to report their cryptoasset holdings.
But South Korean media outlets have claimed that any such system is likely to become a de facto mandatory protocol.
comes hot on the heels of Vikas A scam that has engulfed the country’s political world Including MP Kim Nam-kook.
The scam has been dubbed “Coin Gate” by the media.
Kim, a former rising star in the main opposition Democratic Party, has resigned from the party.
He denies wrongdoing, but has been accused of making suspicious crypto trades worth approximately $4.5 million.
Multiple reports have accused Kim of withdrawing his crypto holdings from domestic exchanges before the travel rule goes into effect in March 2022.
If true, this may have been insider trading, meaning he acted on knowledge of an upcoming legal change.
Prosecutors probing the allegations this week raided Upbit and Bithumb, two of the country’s biggest crypto exchanges.
And the outrage spurred lawmakers to action.
media outlets Idelie, of moneyAnd news The closed-door session of the committee on the matter on May 16 was attended by senior figures from all major political parties, the report said.
CoinGate: Will South Korean lawmakers have to declare their cryptocurrency?
The subcommittees have already received the committee’s proposal, and began the review process yesterday – but the matter is unlikely to stop there.
Some lawmakers want each of the 300 members of the National Assembly to be investigated.
Many believe that Kim may not be the only lawmaker involved in “Coin Gate”.
People’s Power lawmaker Yoon Han-hong, a member of the Political Affairs Committee, called for an investigation of “all 300” sitting lawmakers.
Current South Korean law stipulates that lawmakers must declare real estate, cash or stock holdings worth more than $7,500.
But no such legal requirement exists for crypto holdings.
Lawmakers have suggested including the new proposal as a clause in the upcoming crypto holders “protection” act.
the draft act is already Advanced committee steps ahead of an assembly vote,
Crypto announcements have already happened for MPs Adopted in countries like Ukraine.
In Ukraine, lawmakers have previously been mandated to make annual crypto-holding disclosures.