Vipul Mishra
Source: promesaartstudio/Adobe
Starting in February, approximately 290,000 public sector employees in South Korea will be required to disclose their cryptocurrency holdings.
According to Maeil Kyungjae, the Ministry of Personnel Management has announced that the regulation will also be applicable to the spouses and immediate family members of employees.
The progression comes after a recent ministry declaration that demands high-ranking public officials to reveal their cryptocurrency holdings beginning this year.
The decrees are a direct reaction to the unfolding Coin Gate political controversy.
The focal point of the scandal revolved around a prominent legislator serving on a parliamentary committee related to cryptocurrencies. This legislator was accused of engaging in coin trading based on insider information.
The ministry stated its intention to emphasize potential conflicts of interest and enhance integrity within the public sector.
Last year, additional public officials, such as legislators, were informed that they needed to publicly disclose their cryptocurrency holdings.
Financial regulators’ staff must declare their cryptocurrency holdings and avoid trading in crypto, according to reports.
Central and local government officials, along with “civil servants ranked level four and above,” are required to disclose their cryptocurrency holdings, as stated by the media outlet.
South Korea follows a nine-grade system for its civil service, with grade one being the highest and grade nine (entry) the lowest level.
South Korea: Crypto Disclosures Mandatory from Next Month
The roster comprises top-tier police, fire service, and customs officials.
Additionally, land registrars and tax officers must report their cryptocurrency holdings.
Public sector employees must also reveal valuable metals, stocks, cash, antiques, and real estate assets.
Nevertheless, unlike other items subject to reporting thresholds ranging from $4,000 to $8,000, cryptocurrencies have no such requirement, as reported by the media outlet:
“All virtual assets held, regardless of amount or quantity, must be reported.”
The government will utilize the collected data to establish an openly accessible, searchable database.
This database will enable citizens to verify the cryptocurrency holdings of public sector employees.
The ministry has determined that incorrect declarations may lead to fines, termination, or disciplinary measures.