South Korean Lawmaker at Center of $85 Million Crypto Trades

South Korean lawmakers have come under scrutiny following a recent inspection by the Anti-Corruption and Civil Rights Commission, revealing extensive cryptocurrency trading activities. The investigation, covering the period from May 30, 2020, to May 31, 2023, involved all 298 sitting lawmakers, uncovering significant irregularities in some instances.

Major Crypto Activity Among South Korean Politicians

The commission’s thorough 90-day examination disclosed that 18 lawmakers were found to possess virtual assets. More notably, 11 were actively engaged in trading, with the total buying and selling figures reaching 62.5 billion won ($48.4 million) and 63.1 billion won ($48.8 million), respectively. These findings have raised questions regarding the nature of these transactions and the potential financial gains involved. The detailed report, however, leaves the motives and implications of such dealings ambiguous.

In addition, the commission’s report highlighted the diverse range of virtual assets these lawmakers hold. 107 different types of cryptocurrencies were identified, with Bitcoin being the most commonly held asset. This preference mirrors the broader trends observed in the global cryptocurrency market.

Lawmakers’ Crypto Records Show Significant Discrepancies

The inspection further revealed inconsistencies in the transaction and holding records of 10 lawmakers compared to their voluntary declarations earlier in the year. One case involved a lawmaker who executed 49 cryptocurrency transactions without reporting them to the National Assembly, citing an account with a now-closed cryptocurrency exchange.

The timing of some transactions also raised ethical questions. The commission noted that changes in virtual asset holdings for three lawmakers coincided with their participation in standing committee meetings. While these activities did not breach conflict of interest prevention laws, they raised serious concerns about the legislators’ dedication to their parliamentary duties.

In response to these findings, the commission has recommended implementing new parliamentary rules. These would require lawmakers to report their holdings in virtual assets to bolster transparency and accountability within the National Assembly. Considering the upcoming term after the April 10 general elections, this proposal is particularly pertinent.

The commission’s investigation into these transactions underscores the need for clearer regulations and ethical guidelines regarding lawmakers’ involvement in virtual asset trading. As the use of cryptocurrencies becomes more widespread, the importance of establishing robust frameworks to govern their use by public officials becomes increasingly critical.

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