A new bill mandating South Korean lawmakers and high-ranking government officials to disclose their cryptocurrency holdings is expected to come into effect within the next two months, according to the floor leader of the ruling People Power Party.
On May 23, Representative Yun Jae-ok stated that the scheduled implementation date for the new rules, currently set for December, is not prompt enough, considering the current public interest. Yun Jae-ok emphasized the need for further revision of the bill and proposed adding a clause to accelerate the enforcement date before it is voted upon.
The new bill is slated to be presented for a vote on May 26.
Currently, South Korean government officials are required to declare stocks, bonds, jewelry, and other assets valued over 1 million Korean won ($760). However, there is no obligation to disclose holdings in cryptocurrencies and digital assets.
The introduction of this bill follows a significant scandal involving government official Kim Nam-kuk, who was accused of selling more than $4 million worth of crypto assets before the enforcement of the country's "Travel Rule" in March. In response to the controversy, Kim resigned from the Democratic Party on May 15.
Coinciding with Kim's resignation, South Korean authorities conducted raids on the offices of two local cryptocurrency exchanges, Upbit and Bithumb, as part of the investigation into Kim's alleged financial misconduct.
South Korean officials have been expediting cryptocurrency regulations and related digital assets since the collapse of the Terra ecosystem led by Do Kwon in May last year.
In April, lawmakers introduced a comprehensive bill proposing harsher penalties for crypto-related crimes, including increased fines and sentences ranging from one year to life in prison. These legislative efforts aim to address the evolving landscape of cryptocurrencies and ensure transparency and accountability in the industry.