Starting next year, South Korea will enforce the disclosure of cryptocurrency holdings by approximately 5,800 high-ranking public officials.
Key Takeaways
- About 5,800 high-ranking public officials in South Korea will disclose details of their cryptocurrency holdings as part of the annual asset disclosure process.
- The disclosure mandate stems from two bills passed in May, integrating crypto assets into the annual asset disclosure requirements for elected and high-ranking government officials.
- The Ministry of Personnel Management anticipates that the initiative will bolster transparency in public service, aligning with broader legislative efforts to regulate and protect crypto investors.
- Major South Korean crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, plan to develop a separate information system by June to facilitate property registration for public officials.
Disclosure Mandate for South Korean Public Officials
South Korea is set to implement a significant regulatory step as high-ranking public officials, numbering around 5,800, will be required to disclose details of their cryptocurrency holdings starting next year.
South Korea to disclose top public officials’ crypto holdings next year https://t.co/MjfFd3A8PG
— The Block (@TheBlock__) December 27, 2023
The Ministry of Personnel Management made this announcement, stating that the property details, including cryptocurrencies, will be made public on the government’s “Public Ethics and Transparency Initiative” portal.
This move follows the passage of two bills in May, a legislative effort that integrated crypto assets into the annual asset disclosure requirements for elected and high-ranking government officials.
Collaboration with Crypto Exchanges
To facilitate the process, major South Korean crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, are planning to develop a separate information system by June of the following year.
This system is envisioned to streamline the registration of property details, including cryptocurrency holdings, for the public officials in question.
Broader Regulatory Landscape
The move to enforce cryptocurrency disclosure aligns with broader legislative developments in South Korea. In June, lawmakers passed a set of 19 crypto-related bills aimed at bolstering investor protection.
As part of these regulatory efforts, in July, the FSC announced that domestic companies would be required to disclose cryptocurrency holdings from the subsequent year, incorporating this obligation into new accounting rules.
To Conclude
South Korea’s decision to mandate cryptocurrency disclosure for high-ranking public officials represents a significant step toward regulatory transparency. The initiative, backed by recent legislative developments, aims to align the public sector with comprehensive regulations aimed at protecting crypto investors.
The collaboration with major crypto exchanges for a streamlined reporting system further underscores the country’s commitment to fostering a transparent and regulated crypto landscape.
