Kim Nam-kuk, a member of South Korea’s National Assembly, reportedly liquidated more than $4 million worth of cryptocurrencies before the country’s lawmakers enforced the Financial Action Task Force’s “travel rule.”
According to a May 8 report by The Korea Times, they are the authorities of Korea’s Financial Intelligence Unit investigation Kim for trading roughly 6 billion won — $4.5 million — in crypto assets before South Korea implemented the Travel Rule in March 2022. The lawmaker reportedly said that he did not redeem the assets but transferred them to another exchange and also claimed that he was not required. report such activity.
As a member of South Korea’s National Assembly, Kim had some authority in handling laws related to digital assets and reportedly supported the legislation. proposes a 20% tax on cryptocurrency profits be delayed from 2023 to 2025. Kim has reportedly denied any potential conflicts of interest between managing the crypto assets in his portfolio and making decisions about them as a lawmaker.
“It’s a serious moral hazard,” said Hong Joon-pyo, the mayor of Daegu. “He should have quit his job as a lawmaker and focused on speculative trading instead. In addition, he spearheaded the delay in taxing cryptocurrencies, which can be seen as an abuse of his legislative power to protect his private wealth.”
The news came as lawmakers in the United States considered expulsion of members of Congress from investments in stocks and potentially digital assets. At the time of publication, United States House Representatives and Senators were largely required to report such investments, but were not required to abstain or otherwise recuse themselves if a conflict of interest arose in the legislation or regulations.
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South Korea has been included in many posthumous reports of a 2022 crypto market crash due to the co-founder and former CEO of Terraform Labs. Do Kwon be a citizen of an Asian country. South Korean authorities did so after arresting Kwon in March in Montenegro allegedly seeks his extradition as many victims of his alleged crimes affected the citizens of the country.
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