Korean Politician To Sell Crypto Assets Amid Public Criticism

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Key takeaways:

  • Kim Nam-kuk, a lawyer and politician from South Korea, will apparently liquidate his bitcoin holdings due to a conflict of interest with his holdings. 
  • Kim is being looked into by the Korea Financial Intelligence Unit after trading about 6 billion won ($4.5 million) in cryptocurrency.

In a significant development, Representative Kim Nam-Kuk from the Democratic Party (DP), the main opposition party in South Korea, has agreed to sell his cryptocurrency assets in response to the party’s request. 

This decision comes after allegations of possible improprieties and a perceived conflict of interest due to his substantial holdings in digital currencies. With his bitcoin portfolio holding substantial value, this move aims to address concerns raised by the public and the media.

The South Korean legislator  is currently facing an investigation regarding the withdrawal of 800,000 WEMIX tokens, equivalent to $4.5 million, between late February and early March 2022. 

This activity has raised concerns about a potential conflict of interest, prompting the Financial Intelligence Unit (FIU) of the Financial Services Commission to be informed of these transactions.

This development comes a month after the South Korean National Assembly is expected to pass its digital asset market regulation in April, according to reports.

The South Korean government also announced plans to impose a 20% tax on profits from cryptocurrency trading starting in 2022. Although the measure provoked discussions among legislators

Additional allegations have emerged against the politician, claiming that the first-term lawmaker engaged in cryptocurrency trading during two meetings of the National Assembly’s judiciary committee in May and November of the previous year. There are also suggestions that the lawmaker may have violated domestic regulations when dealing with these tokens a few years ago.

 In response, the Democratic Party has declared its intention to conduct a comprehensive investigation into these allegations, aiming to uncover any potential irregularities in Nam-kuk’s actions. Although the primary focus of the examination will be on him, it could potentially have implications for other members of the Democratic Party as well.

Kim reportedly withdrew all of his coins before March of last year in preparation for the Travel Rule’s implementation, which requires exchanges to submit personal information for transfers surpassing a certain threshold.

Even though Kim is the only person under investigation by the DP at the moment, the party’s leadership is debating whether to include all members in the investigation. This demonstrates the party’s dedication to promoting honesty and morality within its ranks.

The findings of the inquiry into Kim’s bitcoin trading activities will have larger repercussions for South Korea’s political and economic environment. 

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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