Senior public officials in South Korea’s Gyeonggi province have taken a significant step towards transparency by declaring their cryptocurrency holdings. This move is part of the province’s efforts to promote openness among government employees and avoid potential conflicts of interest.
Gyeonggi province has proactively encouraged high-ranking public officials at level 4 or higher to report their virtual assets. To streamline this process, the province amended its ‘Rules on the Code of Conduct for Gyeonggi-do Civil Servants’ in preparation for the upcoming enforcement of the ‘Public Official Ethics Act’ scheduled for December 14th. The amendment mandated that civil servants at level 4 or higher report their virtual assets on a daily basis.
Earlier this year, South Korean lawmakers passed legislation requiring officials to disclose their cryptocurrency holdings. This move aligns with a broader trend of increased regulatory oversight of the cryptocurrency space.
Out of a total of 228 individuals at level 4 or higher, 23 have voluntarily come forward to declare their ownership of virtual assets. Among them, 15 reported relatively small holdings, valued at less than 1 million won, while the remaining 8 had more substantial crypto holdings.
To ensure that these crypto holdings do not interfere with their official duties, the province conducted a thorough review of their job responsibilities, departmental roles, and key office decisions. Subsequently, the matter was presented to the Gyeonggi Provincial Public Service Ethics Committee, which unanimously determined that there was no connection between the individuals’ job roles and their crypto assets.
The Code of Conduct outlines specific tasks that are considered relevant to one’s duties, such as drafting and implementing policies or laws related to virtual assets, investigating and inspecting virtual asset-related matters, reporting and managing virtual asset exchanges, and supporting technological developments linked to virtual assets. Public officials engaged in these tasks are not only prohibited from trading or investing based on information they acquire in their official capacity but are also required to report any virtual asset holdings they possess or have held.
The province is in the final stages of its virtual asset reporting, conducting a comprehensive investigation to prevent conflicts of interest among its public officials. Future steps may include recommending the sale of assets or the exclusion of individuals holding virtual assets from certain duties if their roles become relevant to such holdings. This initiative underscores the growing importance of transparency and regulatory compliance in the cryptocurrency space.
