Candidates in South Korea’s democratic party obliged to reveal Crypto holdings, ensuring transparency

Candidates in South Korea's democratic party obliged to reveal Crypto holdings, ensuring transparency

The Democratic Party of Korea, holding 167 seats in the National Assembly, has introduced a mandatory requirement for prospective candidates to disclose their cryptocurrency holdings ahead of the 2024 general election. This move is part of the party’s broader initiative to emphasize the “high moral standards” of its candidates.

In a closed-door meeting with journalists, Han Byung-do, the chairman of the Democratic Party’s strategic planning committee, shared that the verification process would assess potential conflicts of interest related to virtual assets from the initial screening stage of the verification committee.

The party has set a clear consequence for false reports, stating that the candidature of any individual providing inaccurate information will be canceled. However, specific repercussions for holding cryptocurrencies were not detailed by Byung-do.

To enhance transparency, the disclosed information about prospective candidates, including their digital asset holdings, will be accessible to the public on a dedicated online platform. This platform will feature comprehensive details about candidates’ careers, educational backgrounds, and legislative activity plans.

This decision follows an incident involving a Democratic Party member, Kim Nam-kuk, who faced criticism for once holding at least $4.5 million in Wemix (WEMIX) tokens from South Korean blockchain game developer Wemade. Kim’s ownership of Wemix raised concerns about potential conflicts of interest, insider trading, and money laundering. This case played a role in catalyzing legal initiatives to mandate cryptocurrency holdings reporting by officials in South Korea.

The next general elections in South Korea are scheduled for 2024, with all 300 seats in the National Assembly up for reelection. Despite previous challenges, the Democratic Party is taking proactive steps to ensure transparency and ethical standards among its candidates.

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