The Democratic Party of South Korea has introduced a new policy mandating preliminary candidates for the upcoming general elections to disclose their holdings in virtual assets, including cryptocurrencies. This decision was announced by Han Byung-do, the chairman of the Democratic Party’s Strategic Planning Committee, following discussions within the party’s general election planning team. The objective is to uphold the highest moral standards among candidates and prevent potential conflicts of interest related to their holdings in digital assets.
Chairman Han underscored the significance of this policy in a recent statement, emphasizing the need to strengthen candidate verification based on moral principles. He warned that candidates who fail to accurately report their holdings, including virtual assets, will face legal consequences and potential severe actions, including the cancellation of their candidacy.
Han clarified, “If you make a false report, you will be legally held responsible for it,” and he added, “If you are found, you will face correspondingly strict measures, including the cancellation of candidacy.”
However, Han clarified that mere ownership of virtual assets itself is not the issue. He stated, “Owning it itself is not the problem.” Han emphasized that the verification committee would scrutinize the process of forming the candidates’ property to identify any potential issues and conduct a strict review of the contents.
Nationwide Efforts to Regulate Digital Assets Intensify in South Korea
South Korea’s move to require disclosure of virtual asset holdings by preliminary candidates aligns with broader efforts in the country to enhance transparency and accountability in the political process. Simultaneously, South Korean authorities are actively working to monitor and regulate digital assets within the nation.
South Korea recently joined the Crypto-Asset Reporting Framework (CARF), a coalition of 48 nations advocating for the development of an international framework for cryptocurrency reporting.
The Financial Supervisory Service (FSS) in South Korea is also working towards establishing comprehensive guidelines for the issuance and distribution of cryptocurrencies, further reinforcing the Virtual Asset Users Protection Act passed earlier this year.
Law enforcement and other authorities in South Korea have been diligently investigating frauds and scams, leading to the apprehension of criminals. Notably, a “suspected crypto fraudster” reportedly accompanied South Korean President Yoon Suk Yeol on his state visit to Saudi Arabia. These initiatives collectively reflect the country’s commitment to fostering a responsible and regulated environment for digital assets.