South Korea has announced that high-ranking public officials will be required to disclose their cryptocurrency holdings starting next year. 

In a Wednesday press release, the country’s personnel ministry said this proactive approach is intended to address potential conflicts of interest and promote integrity within the public sector.

The decision comes amidst the growing popularity and adoption of cryptocurrencies in South Korea, where digital assets have gained significant traction among both retail and institutional investors. 

By mandating disclosure of cryptocurrency holdings, the government aims to ensure that public officials maintain the highest ethical standards and avoid any potential conflicts that may arise from their involvement in the crypto market.

Officials Need to Report Details of Crypto Holdings

The new requirement will apply to high-ranking officials across various government agencies and departments. 

These officials will be obligated to report their cryptocurrency holdings, including details of the assets they own and the respective amounts. 

The move is part of the government’s broader efforts to strengthen regulatory oversight of the cryptocurrency industry and promote transparency in the public sector.

“With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong,” the Secretary for Financial Services and the Treasury, Christopher Hui, said. 

More Countries Adopt Tougher Crypto Regulations

South Korea’s decision to mandate disclosure of cryptocurrency holdings reflects a growing global trend of increased regulatory scrutiny surrounding digital assets. 

As cryptocurrencies continue to gain mainstream acceptance, governments worldwide are taking steps to ensure the proper regulation and oversight of this evolving financial landscape.

Likewise, Back in 2020, the Financial Action Task Force introduced the Travel Rule, formally known as FATF Recommendation #16, which orders virtual asset service providers (VASPs) to share the information of the originators and beneficiaries of crypto transactions that exceed a certain threshold. 

A number of jurisdictions have made insufficient progress on implementing the Travel Rule.

In a move to align the country’s legal framework with the global standards of the FATF, Japan’s cabinet implemented tougher AML regulations in May, requiring the tracking of all cryptocurrency transactions. 

One significant element of this revised framework is enforcing the “travel rule.”

Financial institutions must now disclose information on customers who conduct crypto asset transactions, such as their names and addresses. This ensures full disclosure of customer information between financial institutions.