Kim Nam-kuk – a South Korean lawyer and politician – is reportedly selling off his cryptocurrency holdings amid a conflict of interest surrounding his stash.
The Democratic Party (DP), of which he is a part, will also launch an investigation to determine whether he complied with local requirements when acquiring the tokens.
The inspection could reach other party members
According to local media, the DP urged Nam-kuk to sell his approximately 800,000 Wemix coins following allegations that he may have used inside information to acquire them. Some have also suggested that lawmakers failed to follow national rules when dealing with tokens a few years ago.
The party further announced that it would thoroughly investigate the matter to uncover possible irregularities in Nam-kuk’s actions. While the scrutiny will initially focus on him, it may later affect other members of the DP.
“External experts with specialized knowledge could join the investigation if needed, as the coins involve things that are difficult for ordinary people to understand,” spokesman Kwon Chil-seung said.
Nam-kuk said he would cooperate fully and sell the stash, which is worth around $700,000 at the time of this writing.
“I received the recommendation from the party to sell my crypto assets. I will faithfully apply the recommendation. I will disclose the data transparently to the investigation team and conduct the investigation faithfully. »
Nam-kuk reportedly withdrew the coins before March 2022, ahead of legislation that requires crypto entities to report personal data when transferring more than one million won ($758).
The legislator was also involved in a bill that proposed a deferral of income taxation on digital assets. Interestingly, this happened several months before he withdrew his Wemix tokens.
Crypto Taxation Coming in 2025
South Korean authorities have posted plans to apply a 20% tax on gains from cryptocurrency trading from the start of 2022. While the legislation has sparked debate among lawmakers, it has been well received by most residents.
The People’s Power Party propose in October 2021 that the rule should come into force with a one-year delay (from January 1, 2023). The political group also argued that people with earnings of less than $42,000 a year should be excluded from tax.
The Democratic Party also tried to postpone the bill. Woong-rae – a member of the DP – argued that the Asian country had not devised a proper plan focusing on the taxation procedure:
“In a situation where the relevant tax infrastructure is not sufficiently prepared, deferring the taxation of virtual assets is no longer an option but an inevitable situation.”
Finally, the Korean government delayed the rule until 2025. It will apply to all premises whose crypto profits exceed $1,900 per year.
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