The Democratic Party of South Korea has implemented a new policy that mandates preliminary candidates for the upcoming general elections to reveal their holdings in virtual assets, including cryptocurrencies. This decision, announced by Han Byung-do, the chairman of the Democratic Party’s Strategic Planning Committee, is the result of discussions within the party’s general election planning team. The objective of this policy is to ensure that candidates maintain the highest moral standards and avoid potential conflicts of interest related to digital asset ownership.
Chairman Han emphasized the importance of this policy:
“The consensus was that the verification of candidates should be strictly strengthened based on morality,” he said.
Han Byung-do also warned that candidates who fail to provide accurate reports of their holdings will face legal consequences, which may include the cancellation of their candidacy. Han highlighted, “If you make a false report, you will be legally held responsible for it,” and “If you are found, you will face correspondingly strict measures (cancellation of candidacy, etc.).”
“However, (holding virtual assets) itself cannot be questioned. Owning it itself is not the problem,” Han added. He further explained, “If you examine the process of acquiring the assets, you may identify problems. Therefore, the verification committee will thoroughly review the contents.”
South Korea’s Transparency and Accountability Efforts
This policy is part of South Korea’s broader efforts to enhance transparency and accountability in the country’s political process. In addition to the disclosure requirement for candidates, the South Korean authorities have taken steps to monitor and regulate digital assets in the nation.
South Korea recently became a member of the Crypto-Asset Reporting Framework (CARF), a consortium of 48 countries advocating for the establishment of an international framework for cryptocurrency reporting. The country’s Financial Supervisory Service (FSS) is also developing comprehensive guidelines for the issuance and distribution of cryptocurrencies to strengthen the Virtual Asset Users Protection Act, which was passed earlier this year.
The police and other authorities have been actively investigating fraud and scams, resulting in the arrest and imprisonment of criminals involved in crypto-related illegal activities. However, it has been reported that a “suspected crypto fraudster” joined South Korean President Yoon Suk Yeol’s state visit to Saudi Arabia, raising concerns about the efficacy of the country’s efforts to combat fraudulent activities.
