There’s a rumor of a conflict of interest around the South Korean opposition lawmaker Kim Nam-Kuk over crypto transactions.
The growing domestic outrage alleged that Kim liquidated over $4 million worth of crypto assets before the lawmakers would enforce the Financial Action Task Force Travel Rule.
Lawmaker Moves Crypto Funds Before Implementation Of Law
A report from the news outlet, The Korea Times disclosed the joint investigation by the Korean authorities and the country’s Financial Intelligence Unit (FIU) on Kim.
The investigation is based on the allegation that Kim withdrew 800,000 WEMIX tokens between February and March 2022.
Between January and February 2022, Kim of the Democratic Party of Korea reportedly held 6 billion Won in his digital wallet.
However, the lawmaker was accused of transferring all his crypto holdings before the authorities could implement the Travel Rule on March 25, 2022.
It is important to note that regulations mandate all crypto service providers to disclose the personal information of investors involved in trades exceeding a value of 1 million Won in digital assets.
The FIU of the Financial Services Commission received the report concerning Kim’s withdrawals. The South Korean regulator classified them as suspicious transactions and reported them to the prosecutor’s office accordingly.
On his part, Kim Nam-Kuk denied cashing out his digital holdings, stating that he only moved the funds to another crypto exchange. Also, he maintained that he was not obligated to report such transactions by law.
The cybercitizens have condemned the act of the lawmaker who had positioned himself as a “poor” politician in the past. The Mayor of Daegu, Hong Joon-Pyo, commented that Kim should resign from his political position. The person expressed disappointment in the legislator’s actions, describing it as a serious moral problem.
The Mayor recalled that Kim was among those that delayed crypto taxation through legislative voting. This suggests that the lawmaker used his legislative position to cover personal gains in digital assets.
Government To Fix Loopholes In Disclosure For South Korean Public Officials
The Korean authorities are still investigating Kim’s alleged crypto holdings. According to The Korea Herald, the outcome of the investigation will play a vital role in deciding if public officials must disclose their crypto assets.
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Such a move will mandate all public officials to include digital asset holdings in their asset reports or disclosures. Crypto investment has been a heated subject in South Korea and other parts of the world.
In the United States plans, some members of Congress want to pass a bill that will bar members from investing in digital assets and stocks. The Senators and representatives must disclose such investments in their assets reports, but nothing prevents them from trading them.
These investments have created controversy as many believe U.S. Congress members can benefit from insider trading without facing legal consequences. Just last week, a Democratic Congresswoman sold shares from the First Republic Bank just before financial behemoth JP Morgan acquired it.
Similarly, the Taiwanese government is considering extending disclosure reports of public officials to digital assets. Taiwon’s Ministry of Justice cited that the rule will ensure public servants disclose their crypto holdings.
Featured image from Pexels and chart from Tradingview
