South Korea's public officials have been caught in a cryptocurrency storm, with one in five holding onto the digital assets, according to a recent report by the Public Ethics Committee. The shocking revelation has shed light on the extent to which cryptocurrencies are seeping into the country's government ranks.
A staggering 411 public officials, out of a total of 2,047, have been found to possess cryptocurrency portfolios worth approximately 14.41 billion Korean won, which translates to $9.8 million. This eye-catching statistic highlights the growing presence of cryptocurrencies in South Korea's public sector.
Seoul City Councilor Kim Hye-young stands out as one of the most invested officials, boasting a cryptocurrency portfolio worth 1.7 billion won ($1.2 million). Her holdings are diversified across 16 different types of cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Ripple's XRP. However, what sets her apart is that the majority of her holdings belong to her family members.
Kim Hye-young's husband owns an impressive 472 Dogecoin, while her husband owns a whopping 519,004 XRP. Her son also holds 3,336 XRP, showcasing the significant influence of family ties in her cryptocurrency portfolio.
Seoul City Councilor Choi Min-gyu takes second place with a whopping 1.62 billion won ($1 million) worth of cryptocurrencies. His holdings include 409,551 XRP, 9,402 Arbitrum, and 4,701 Cardano.
Busan-Ulsan Expressway CEO Kim Ki-hwan takes third place with a significant portfolio worth 1.42 billion won ($969,000). What sets him apart is his affinity for lesser-known altcoins like Luna Classic, Challenge docs, Horus Pays, and EOS Blacks.
In January 2024, new legislation was enacted, mandating all public officials to declare their cryptocurrency holdings. This requirement was the result of a growing concern that public officials could hide large amounts of personal wealth, potentially leading to corruption.
The use of altcoins is particularly prevalent in South Korean portfolios, with Ripple's XRP being a notable exception. Despite the prominence of major tokens like Bitcoin and Ethereum, the latter two have been noticeably absent from the country's public officials' cryptocurrency holdings.
South Korea's reputation for strict regulations on crypto trading remains intact. The recent legislation requiring public officials to declare their holdings is just another example of the country's commitment to regulating the industry.
The Lazarus group, backed by North Korea, carried out one of the most infamous crypto hacks in history. South Korea's recent crackdown on unregistered overseas crypto exchanges operating within its borders is a testament to the country's determination to regulate the industry.
The Financial Intelligence Unit (FIU) has approached Google to limit the advertising of certain unregistered overseas crypto exchanges to Korean consumers. This move underscores South Korea's efforts to combat disorderly conduct within the crypto industry.
In March, the FIU pursued crypto operators who failed to report their activities according to South Korean laws. This represents another step in South Korea's quest to regulate the entire market with stricter rules.
Some argue that South Korea's strict regulations on cryptocurrencies might be a form of compensation for the country's perceived lack of law and order in the face of North Korea's crypto activities. While this perspective is debatable, one thing is clear: South Korea's commitment to regulating its cryptocurrency industry remains unwavering.