In a significant move to enhance transparency and accountability, South Korea‘s Ministry of Personnel Management has announced that high-ranking public officials must disclose their cryptocurrency holdings starting next year.
This development follows the passing of two bills in May, making crypto assets part of the annual disclosure requirement for elected and high-ranking government officials.
Crypto holdings disclosure requirement
The Ministry of Personnel Management revealed that approximately 5,800 public officials must disclose property details on the government’s “Public Ethics and Transparency Initiative” system, including their cryptocurrency holdings.
This online portal is designed to facilitate the registration and review of property disclosures for public officials. The move is expected to significantly enhance transparency within the public service.
Minister Kim Seung-ho, who heads the Ministry of Personnel Management, stated that integrating this public disclosure service and registering virtual assets is anticipated to further bolster transparency within the government. The move reflects South Korea’s commitment to promoting ethical and transparent behavior among its public officials.
Integration of crypto holdings into asset disclosure
This initiative is part of South Korea’s broader efforts to regulate and oversee the cryptocurrency market. In June, South Korean lawmakers passed 19 crypto-related bills to better protect crypto investors. Under these new regulations, the Financial Services Commission (FSC) and the Bank of Korea were granted the authority to oversee cryptocurrency operators and asset custodians.
As part of these regulatory changes, the FSC announced in July that domestic companies would be required to disclose their cryptocurrency holdings starting the next fiscal year. This move aligns with the introducing of new accounting rules that aim to provide greater transparency and accountability in cryptocurrency. Furthermore, crypto issuers must provide comprehensive information, including details about their tokens, business models, and internal accounting policies.
Crypto exchanges’ role in property registration
South Korea’s five major domestic cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—have announced plans to establish a separate information system in June of the coming year.
This system is expected to be utilized for the registration of property holdings by public officials. The involvement of these cryptocurrency exchanges is seen as a crucial step in streamlining the property registration process and ensuring accuracy.
By leveraging the expertise and infrastructure of established crypto exchanges, the South Korean government aims to facilitate the smooth implementation of its crypto asset disclosure requirements. This partnership is expected to enhance the efficiency and reliability of the property registration process for public officials.
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