South Korea’s ruling party, the People Power Party (PPP), has called for the swift introduction of cryptocurrency regulations following the recent approval of a bill targeting transparency in lawmakers’ digital asset holdings. PPP floor leader Rep. Yun Jae-ok urged the government to advance the enforcement of crypto rules currently scheduled for December, describing the timeline as too late.
The decision to propose stricter crypto laws came after a revision to the Public Service Ethics Act was passed by a parliamentary subcommittee. According to local news outlet Yonhap News, Jae-ok believes that “given the current high level of public interest, especially regarding lawmakers, it’s not appropriate to enforce the law six months later after the promulgation.”
The proposed bill would require lawmakers and other government officials to report their cryptocurrency holdings in their annual asset disclosure, promoting greater transparency in the sector. This move comes in the wake of a recent scandal involving now-independent lawmaker Kim Nam-kuk, who failed to report his 6 billion won (US$4.5 million) worth of digital assets in the form of 800,000 Wemix coins in 2021.
Furthermore, Jae-ok expressed concerns about Kim withdrawing 250 million won in cash from his cryptocurrency holdings in February and questioned the whereabouts of the unreported funds, raising suspicions of money laundering. The push for crypto rules in South Korea coincides with similar legislative efforts in Hong Kong, which aims to establish itself as Asia’s crypto hub.
As South Korea grapples with the merits of introducing crypto regulations earlier than planned, proponents argue that doing so would bring much-needed clarity for crypto businesses operating within the country. On the other hand, some may worry that an expedited implementation could lead to hasty, ill-conceived legislation that might negatively impact the market and deter potential investors.
Overall, the introduction of formal crypto laws in South Korea is likely to generate a polarizing response. While supporters view it as a necessary measure to ensure greater transparency and curb potential illicit activities, critics may view the situation as an attempt to over-regulate the market, potentially stifling innovation and investment. As the debate continues, it remains to be seen what the final outcome will be for the nation’s burgeoning cryptocurrency landscape.
Source: Coingape
