South Korea’s Democratic Party Mandates Crypto Disclosure for Parliamentary Candidates

Crypto and the 2024 General Election

The Democratic Party of Korea, which currently holds a majority of 167 out of 300 seats in the National Assembly, has made it mandatory for prospective candidates to disclose their digital asset holdings, including crypto, before the 2024 general election.

As reported by News1, this disclosure is part of the party’s effort to demonstrate the “high moral standards” of its candidates. Han Byung-do, the chairman of the Democratic Party’s strategic planning committee, reportedly stated in a closed-door meeting with journalists:

In the case of false reports, the party will cancel that person’s candidature. However, Byung-do didn’t elaborate on any consequences for holding crypto.

The public will be able to access information on prospective candidates on a separate online platform that will feature details of their careers, educational background, and legislative activity plans.

Cryptocurrency Ownership and Money Laundering

The upcoming general elections in South Korea, scheduled for 2024, will see all 300 seats of the National Assembly open for reelection.

In May 2022, Kim Nam-kuk, a member of the Democratic Party, was accused of owning at least $4.5 million worth of Wemix (WEMIX) tokens developed by the South Korean blockchain game developer Wemade. This sparked concerns about the potential for insider information and money laundering, leading to the development of a legal initiative to require officials to report their holdings of cryptocurrencies. However, a parliamentary ethics subcommittee of South Korea voted down a motion to expel Kim from the National Assembly, although he did leave the Democratic Party.