Transparency Initiative: South Korea Unveils Plan to Publicly Disclose Cryptocurrency Holdings of Government Officials

In an effort to bolster transparency, South Korea's Ethics Policy Division has declared the commencement of an asset disclosure service for public officials, scheduled to launch in the coming year. This service seeks to encompass the declaration of cryptocurrency and other asset holdings by approximately 5,800 public officials. The initiative responds to recent legislative advancements aiming to render such information publicly available, showcasing a dedication to nurturing openness within the public sector.

As per the announcement from the Ethics Policy Division on Wednesday, public officials will, from the next year onward, have access to an integrated asset disclosure service. This service is set to replace the existing method of reporting asset disclosures in official publications, introducing a more streamlined and accessible process through the Public Official Ethics System (PETI).

The impetus for this legislative shift can be traced back to a pivotal moment in May when new laws were passed, compelling public officials to disclose their cryptocurrency holdings. This decision was prompted by a notable scandal involving a legislator, underscoring the imperative for heightened transparency and accountability within the public service domain.

Kim Seung-ho, the director of personnel management, expressed optimism regarding the positive impact of this initiative on the transparency of the public service community. In Wednesday's official communication, Kim remarked, 

“We anticipate that the transparency of the public service community will be further augmented through the implementation of an integrated service for the disclosure and registration of virtual assets owned by public officials.”

Looking ahead, cryptocurrency exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax have pledged to establish information provision systems by June 2024. These systems are crafted to aid in monitoring the holdings of public officials, aligning with the broader goals of the recent legislation.

As South Korea takes determined strides to ensure accountability and transparency in the realm of public service, the integrated asset disclosure service is poised to emerge as a fundamental element in promoting ethical conduct and fostering trust between officials and the public. The proactive measures undertaken, including collaboration with major cryptocurrency exchanges, underscore a comprehensive approach to addressing the evolving landscape of asset holdings in the digital era.

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