✔️ Information reviewed and updated in May 2024 by Eduardo López
A Pioneering Measure to Strengthen Public Ethics and Transparency in the South Korean Government
The cryptocurrency regulatory landscape is undergoing a significant change in South Korea. The Ministry of Personnel Management has recently announced that around 5,800 high-ranking public officials will be forced to make their cryptocurrency holdings public starting next year.
The decision comes in response to the passage of two bills in May, which incorporate crypto assets into the annual asset disclosure required for elected and high-ranking government officials. This significant step towards transparency seeks to strengthen trust in the public service.
Disclosure of Holdings through the “Public Ethics and Transparency Initiative”
Asset details, including cryptocurrencies, will be disclosed through the government system “Public Ethics and Transparency Initiative.” This portal, designed to manage and review the asset declarations of public officials, will become a key reference to ensure integrity in the public service.
“Public service transparency is expected to further increase with the implementation of an integrated public disclosure service and virtual asset registration,” said Kim Seung-ho, Minister of Personnel Management.
Collaboration with Main Crypto Exchanges for Implementation
The ministry highlighted that the five major national crypto exchanges - Upbit, Bithumb, Coinone, Korbit and Gopax - are planning to develop an independent information system by June next year. This system could be used to facilitate the registration of ownership of virtual assets.
These changes align with recent legislation passed in June, which seeks greater protection for crypto investors. The Financial Services Commission (FSC) and the Bank of Korea have gained authority to supervise crypto operators and asset custodians, reinforcing security and trust in the South Korean cryptocurrency market.
Commitment to Transparency: A Call to Responsibility
In July, the FSC announced plans to require domestic companies to disclose their cryptocurrency holdings starting next year, as part of new accounting rules. These rules will also impose an obligation on cryptocurrency issuers to disclose detailed information, including token details, business models, and internal accounting policies.
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