Starting in 2024, South Korea will implement new regulations requiring nearly 6,000 government officials to publicly declare their cryptocurrency holdings. This directive, announced by the Department of Personnel Management on December 27, aims to integrate information about officials' private crypto assets into the Public Officers Ethics System.
In the past, some South Korean civil servants voluntarily disclosed their cryptocurrency holdings through the official government gazette or on the websites of various ministries or parliamentary bodies. However, with the introduction of the Public Officers Ethics System, South Korean citizens will have access to disclosure statements from at least 5,800 officials by 2024.
To facilitate this process, South Korea’s five major cryptocurrency exchanges - Upbit, Bithumb, Coinone, Korbit, and Gopax - are set to launch a dedicated “information provision system” in June 2024. This system will streamline the registration and disclosure of information regarding cryptocurrency holdings.
The push for more transparency in crypto asset holdings among public officials gained momentum following a controversy in May 2023. Democratic Party member Kim Nam-kuk faced criticism after disclosures revealed her possession of at least $4.5 million in Wemix (WEMIX) tokens, developed by South Korean blockchain game company Wemade. Kim’s significant investment in Wemix raised concerns about potential conflicts of interest, insider information exploitation, and even money laundering.
In reaction to this controversy, the South Korean National Assembly took decisive action. They amended the National Assembly Act and the Public Service Ethics Act, leading to a unanimous vote in favor of mandating the disclosure of crypto assets by civil servants. Additionally, in November, South Korea’s Democratic Party, which commands a majority in the National Assembly with 167 of the 300 seats, mandated its potential candidates to disclose their digital asset holdings in their party profiles, reinforcing the movement towards greater transparency in cryptocurrency ownership among public officials.
