In an unprecedented move that propels the era of cryptocurrency transparencya South Korean committee approved a bill forcing lawmakers to disclose their digital assets. This transformative regulation comes in the wake of a scandal involving a top lawmaker’s undisclosed crypto fortune that rocked the nation earlier this month.
Currently, elected lawmakers are required to disclose traditional assets like cash, stocks and real estate within one month of their election, a protocol designed to maintain transparency and deter potential conflicts of interest. However, this legislation did not encompass the assets in cryptocurrencies more and more popular so far. The proposed new amendments require that Incumbent Assembly Members Declare Their Crypto Holdings in the following month, making digital assets as responsible as their traditional counterparts.
In South Korea, the legislative process is meticulous, involving several stages of scrutiny and debate. The initial draft by the parties involved is followed by reviews in committee, culminating in debate and voting in plenary. After approval, the President’s assent transforms the bill into law after public promulgation. Currently the new crypto transparency bill currency is undergoing extensive review by the Legislative Committee, assessing potential conflicts with existing laws. After that, it will be submitted for debate in plenary session.
An International Perspective: Crypto Regulations in the US and UK
Interestingly, the South Korean movement resonates with regulatory loopholes in international legislatures. In the United States, the law STOCK of 2012 requires members of Congress to disclose their financial holdings, but it neglects cryptocurrency assets. However, a 2018 advisory note suggests a similar reporting protocol for digital assets. Meanwhile, in the UK MPs are required to declare financial interests, including actions. But here too, cryptographic assets escape the legislative mesh.
French lawmakers, like many of their international counterparts, are required to disclose their financial assets. This includes cash, stocks, real estate and other forms of traditional wealth to promote transparency and prevent conflicts of interest.
However, when it comes to digital assets such as cryptocurrencies, France, like many countries, is in a gray area.
Tracing the Genesis: The Crypto Scandal in South Korea
The catalyst for South Korea’s legislative reforms can be traced back to a scandal involving the Democratic Party lawmaker Kim Nam-kuk and his undisclosed cryptocurrency holdings worth millions. Kim would have held tokens of wemadea gaming company, valued at around $4.5 million in 2021. The scandal deepened as Kim is accused of liquidating his digital assets before the implementation of Korea’s travel rule. South in March 2022, a rule that requires cryptocurrency exchanges to report transactions exceeding 1 million won (approximately $757) and to identify the entities involved.
Moreover, the controversy intensified as Kim co-sponsored a bill in July 2021 that sought to defer taxation on digital assets, about six months before liquidating its Wemade tokens. Kim has strongly denied the allegations, even threatening to file a lawsuit. stock in court against media organizations for false information.
South Korea’s legislative push for cryptocurrency transparency is a notable effort toward full financial accountability of elected officials. The world watches as the South Korea navigates the uncharted waters of digital asset transparency, potentially setting a blueprint for other nations grappling with the changing landscape of crypto assets.
The article Regulation: Korea wants to force lawmakers to disclose their cryptocurrencies appeared first on Corner Academy