The government of South Korea has expanded policies regarding cryptocurrency investment for government officials. As per local media outlets, the Public Official Ethics System will grant 5,800 official declarations to citizens in 2024.
Public Official Ethics Database
As per the policy change, around 6000 South Korean officials are directed to publically disclose their cryptocurrency holdings. The Ministry of Personnel Management stated that government official private holdings of digital currencies are included in the Public Official Ethics database.
A few native civil servants disclose their cryptocurrency holdings published on the state gazette and on various websites associated with Korean ministry offices or parliamentary sections.
However, the Public Official Ethics System will allow Korean citizens to access around 5,800 declarations in 2024. Starting from June 2024, 5 major South Korean crypto trading platforms namely Bithumb, Coinone, Gopax, Upbit, and Korbit will publish separate information access networks.
South Korean Government Officials to Face Scrutiny Regarding Crypto Investments
In 2023, a member of the Korean Democratic Party came under fire for holding $4.5 million in Wemix tokens. The token was issued by a South Korean game developer called Wemade. The investment disclosure sparked controversy among the public regarding conflict of interest, money laundering, and insider information, etc.
The South Korean National Assembly edited the National Assembly Act and Public Service Ethics Act to include disclosure of crypto positions for civil servants.
Democratic Party of South Korea mandated that party workers disclose their digital asset holdings on their political profile. An investigation conducted by the Anti-Corruption and Civil Rights Commission recently noted that during 2023 legislators from the region participated in cryptocurrency trading.
On the other hand, the state has also updated regulatory policies concerning the sector. As per the new regulations, cryptocurrency investors hailing from the region will be able to earn interest based on their staking positions on exchanges.
Bankrupt CeFi Company Haru Invest Projects Asset Recovery
A yield generation platform hailing from South Korea named Haru Invest noted that the platform is looking at asset recovery. Hugo Lee the CEO of the firm said in a 2nd October interview that the firm was undergoing legal process for rehabilitation and cooperation with investigative agencies.
However, the firm noted that it was unable to distribute assets directly to investors. Therefore, the firm refrained from sharing an official distribution schedule.
Lee reassured investors that they would be able to recover assets as the firm was prioritizing retail investors rather than creditors. The firm projected that 60% of its clients are based outside of the country.
The firm suspended deposits and withdrawals after the discovery of alleged fraudulent trades from a consignment operator named B&S Holdings. Following the incident, the firm filed for bankruptcy while creating a contagion for another crypto-lending firm named Delio.
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