{"id":32863,"date":"2023-07-07T21:38:32","date_gmt":"2023-07-08T01:38:32","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/korean-regulator-to-force-staff-to-declare-crypto\/"},"modified":"2023-07-07T21:38:33","modified_gmt":"2023-07-08T01:38:33","slug":"korean-regulator-to-force-staff-to-declare-crypto","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32863","title":{"rendered":"Korean Regulator to Force Staff to Declare Crypto"},"content":{"rendered":"
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The top South Korean financial regulator will force its employees to declare their crypto holdings in the aftermath of the \u201cCoin Gate\u201d scandal.<\/p>\n

Lawmakers in the nation have come under fire for suspected insider trading, with one MP accused of selling his tokens in advance of the rollout of a new piece of crypto regulation.<\/p>\n

It has since emerged the MP was serving on a crypto-related parliamentary subcommittee at the time.<\/p>\n

The fallout of \u201cCoin Gate\u201d has seen MPs, regulators, and other public officials all call for one another to disclose their crypto holdings.<\/p>\n

And this, Yonhap reported, has now spread to the staff of the Financial Services Commission (FSC), the nation\u2019s top financial regulator.<\/p>\n

The FSC is one of the main government agencies charged with regulating the nation\u2019s crypto industry, and has the ability to conduct spot-checks on domestic crypto exchanges.<\/p>\n

The commission this week updated its Code of Conduct for employees, with the new code barring staff working with \u201cvirtual assets\u201d from \u201cinvesting in virtual currency using undisclosed information learned while performing their duties.\u201d<\/p>\n

And the new code requires any staff who own tokens to \u201creport this to the Financial Services Commission.\u201d<\/p>\n

The block on crypto trading will apply to \u201cpublic officials currently performing duties related to virtual assets and employees who have performed such duties in the prior six months.\u201d<\/p>\n

Employees will be required to file a new form named Report on the Possession of Virtual Assets.<\/p>\n

This form requires any crypto-holding staff to inform the FSC of \u201cthe type of virtual assets held,\u201d the \u201cdate of acquisition,\u201d and \u201cthe quantity\u201d of tokens held.<\/p>\n

The FSC will need legislative changes to put its new code into action, but is hopeful it can fast-track this process.<\/p>\n

An FSC official was quoted as saying:<\/p>\n

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\u201cWe plan to complete the legislative process in the second half of this year.\u201d<\/p>\n<\/blockquote>\n

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S Korean Regulator Wants Government Workers to Declare Crypto \u2013 Will Others Follow Suit?<\/h2>\n

But South Korea and Japan are widely thought to be at the cutting edge of crypto regulation, a fact that could suggest other nations could well follow their leads.<\/p>\n

Some countries in other regions have already rolled out legislation that requires certain public officials to file crypto declarations.<\/p>\n

Early adopters on this front include Ukraine, where laws were introduced to force sitting MPs to declare all assets, including crypto holdings.<\/p>\n

Such declarations have previously led to outrage about the size of the crypto caches held by many Ukrainian MPs, with some asking where lawmakers acquired such vast token holdings.<\/p>\n<\/p><\/div>\n