South Korea has taken an important step toward greater transparency and integrity within its public sector.
Starting next year, senior government officials will be required to disclose their cryptocurrency holdings under new legislation announced by the country’s Ministry of Personnel Management.
New bill to promote transparency in the public sector
Under the new legislation, around 5,800 public officials must make their crypto and other assets public starting next year.
South Korea’s Ethics Policy Division revealed that this information, traditionally published in official newspapers, will now be accessible through the Public Officials Ethics (PETI) system.
This integrated asset disclosure service will provide public officials with a simpler and more transparent approach to reporting their assets, including cryptocurrencies and other assets.
Kim Seung-ho, the director of personnel management, Express optimism about the new system.
In a recent article, he said: “We hope that the transparency of the public service community will be further increased through the implementation of an integrated service for the disclosure of the property of public officials and the registration of the ownership of virtual assets. »
South Korea tightens laws following $4.5 million Wemix token scandal
The development was a response to a scandal that occurred in May 2023 involving Kim Nam-kuk, a member of the Democratic Party. He was under investigation for allegedly possessing more than $4.5 million worth of Wemix tokens, created by South Korean blockchain company Wemade.
This has increased concerns about possible conflicts of interest, misuse of inside information and possible money laundering, leading to a reassessment of rules on asset disclosure.
The situation led lawmakers to approve two new bills. These laws require elected officials and senior government officials to declare their cryptocurrency holdings as part of their annual asset declarations.
This legislative measure aims to strengthen public trust by making the financial interests of government officials, including their involvement in the cryptocurrency sector, more visible.
In related news, South Korea’s major domestic crypto exchanges – Upbit, Bithumb, Coinone, Korbit and Gopax – announced plans to develop a separate information system starting next year in June .
This system could play a central role in the property registration process, providing a dedicated platform for the accurate and efficient disclosure of crypto assets.
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