íŕçâŕíčĺ

Korean Government Officials De Facto Banned from Holding and Trading Crypto


The South Korean government has reportedly de facto banned all government officials from holding and trading cryptocurrencies. Even if their crypto activities are not related to their jobs, public officials can still be subject to disciplinary actions.


Public Officials De Facto Banned from Crypto

South Korea has reportedly “issued a ban on virtual currency holdings and transactions to all government officials,” Maeil Business Newspaper reported.

According to the document entitled “Virtual currency holdings and transaction-related information for civil servants,” the publication elaborated:

The personnel department requested that they [civil servants] refrain from holding and trading virtual currency even if there is no job relevance…This is the first time the government has formulated a virtual currency ban for all public officials.


Disciplinary Actions Encouraged but Not Defined

Korean Government Officials De Facto Banned from Holding and Trading CryptoThe publication quoted the personnel affairs department explaining that if employees trade digital currencies for their personal benefit, they “are in violation of the prohibition of forbearance obligations under the civil servants’ law,” especially if trading is done during work hours. “Even if there is no job relevance,” the officials “could be subject to discipline,” the news outlet conveyed and quoted a high-ranking official explaining:

The disciplinary issue is not a quantitative cut, but a problem of interpretation of the law. Each ministry should judge the possibility of discipline.


Additional Efforts

The Korean Financial Services Commission (FSC), the Fair Trade Commission, and other related departments have already warned their employees “to refrain from investing in virtual currency,” the news outlet added. Furthermore, the head of the Office of Policy Coordinator, Hong Nam, told all public officials to do the same in January.

The Blue House.

Last month, the Korean Anti-Corruption & Civil Rights Commission issued the “Code of Conduct Guide to Cryptocurrency” to all government departments and public agencies.

This document adds cryptocurrency to Article 12 of the Civil Servant Code of Conduct, prohibiting public officials from using “the information learned during their duties to assist in trading or investing” in cryptocurrency. In addition, the FSS, which is an independent agency, said that it will review its own code of conduct.

Earlier this year, a bill was introduced to require public officials to declare their cryptocurrency investments. It followed accusations that some government employees were involved in insider trading using undisclosed knowledge of future regulations as well as market manipulation.

05.03.2018 / 21:35 54
US City Mulls 18-Month Moratorium on Bitcoin Mining US City Mulls 18-Month Moratorium on
A city in the U.S. state of New York could put an 18-month halt on new bitcoin mining operations in the area amid concerns from local officials.
Korea’s Mandatory Crypto Real-Name System Neglected – 19% Conversion Rate Korea’s Mandatory Crypto Real-Name
South Korea’s real-name system for cryptocurrency trading has been enforced for over a month, but most accounts have not been converted to the new
Russian Officials Propose Lighter ICO Regulations, Cryptocurrency Income Tax Breaks Russian Officials Propose Lighter ICO
Russian officials have recently suggested a number of modifications to the draft law “on digital financial assets,” including tax breaks and
Marshall Islands Plans To Launch National Cryptocurrency And ICO, Govt Officials Report Marshall Islands Plans To Launch
The Pacific nation the Marshall Islands is all but set to launch its own state-issued cryptocurrency via an ICO, which will circulate alongside the
Trump Sanctions on North Korea Won't Stop Crypto Hacks, Senator Says Trump Sanctions on North Korea Won't
The Trump administration imposed new sanctions on North Korea last week, but one U.S. senator has said that the measures don't go far enough in
Louisiana Officials Probe Staffers for Bitcoin Mining Louisiana Officials Probe Staffers for
The attorney general of the U.S. state of Louisiana is reportedly investigating a group of former staffers for using official resources to mine
Comments (0)
Add a comment
Comment on