Lawmakers in South Korea have come under intense scrutiny after an Anti-Corruption and Civil Rights Commission inspection uncovered widespread involvement in cryptocurrency trading. From May 30, 2020, to May 31, 2023, the investigation encompassed all 298 sitting lawmakers, revealing substantial irregularities in some instances.
According to a recent report, the exhaustive 90-day examination revealed that 18 lawmakers possessed virtual assets, with 11 actively participating in trading. Transactions totaled 62.5 billion won ($48.4 million) for purchases and 63.1 billion won ($48.8 million) for sales, prompting questions about the nature of these dealings and their potential gains. However, the detailed report left the motives and implications of these transactions open to interpretation.
Lawmakers’ Cryptocurrency Holdings Revealed
The commission’s exhaustive report provided insight into the wide variety of virtual assets these lawmakers hold, revealing holdings across 107 different cryptocurrencies. Notably, Bitcoin emerged as the most prevalent among these holdings, reflecting a parallel trend observed in the expansive global cryptocurrency market.
Moreover, discrepancies surfaced in the transaction and holding records of 10 lawmakers compared to their earlier voluntary declarations this year. One lawmaker conducted 49 cryptocurrency transactions without reporting them to the National Assembly, referring to an account with a now-defunct cryptocurrency exchange.
Ethical concerns emerged regarding the timing of some transactions. The commission noted that changes in virtual asset holdings for three lawmakers coincided with their involvement in standing committee meetings. Although these actions did not breach conflict of interest prevention laws, they raised significant concerns about the legislators’ commitment to their parliamentary duties.
Responding to these revelations, the commission proposed new parliamentary regulations mandating lawmakers to report their virtual asset holdings. This initiative aims to enhance transparency and accountability within the National Assembly, especially given the upcoming term following the April 10 general elections.
The investigation highlights the need for clearer regulations and ethical guidelines governing lawmakers’ involvement in virtual asset trading. As cryptocurrencies gain wider acceptance, establishing robust frameworks to manage their utilization by public officials becomes increasingly imperative.