South Korea Takes Strides to Boost Crypto Transparency and Regulation
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In a bid to enhance transparency and accountability in the crypto industry, South Korea is set to implement a groundbreaking measure requiring public officials, including elected representatives and high-ranking civil servants, to disclose their cryptocurrency holdings as part of their annual asset disclosure.
The move, slated to take effect next year (2024), aims to foster a more transparent public service and mitigate corruption and conflicts of interest.
Approximately 5,800 public officials will be mandated to register their property details, including cryptocurrencies, through the government’s online portal, known as the “Public Ethics and Transparency Initiative” system. This platform is specifically designed to manage and scrutinize property disclosures made by public officials.
South Korea Passed 19 Crypto Bills in June
Kim Seung-ho, the Minister of Personnel Management, emphasized that the registration of virtual assets will facilitate compliance with the recently enacted laws and regulations pertaining to cryptocurrencies. These regulations, comprising 19 bills passed in June, are geared towards safeguarding crypto investors, preventing money laundering, and addressing fraud within the industry.
Empowering the Financial Services Commission (FSC) and the Bank of Korea, the legislation provides oversight and supervision powers over crypto operators and custodians operating within the country.
Furthermore, the FSC announced in July its intention to mandate domestic companies, including major crypto exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax, to disclose their cryptocurrency holdings starting next year. This move aligns with new accounting rules, requiring comprehensive disclosure of token details, business models, and internal accounting policies.
To accommodate this regulatory shift, the five major domestic crypto exchanges plan to develop a dedicated information system by June next year. This system will facilitate the seamless property registration of public officials, ensuring compliance with the evolving legal landscape.
South Korea, a crypto industry leader with a vibrant ecosystem of startups and a robust user base, strives to strike a balance between fostering innovation and protecting investors and public interests.
The upcoming measures underscore the nation’s commitment to responsible crypto governance.
