Korean Politician Agrees to Sell His Crypto Assets After Public Scrutiny (Report)

Korean Politician Agrees to Sell His Crypto Assets After Public Scrutiny (Report)

Kim Nam-kuk – a South Korean lawyer and politician – will reportedly sell his cryptocurrency holdings due to a conflict of interest over his holdings.

The Democratic Party (DP), to which he belongs, will also launch an investigation to determine whether he complied with local requirements when purchasing the tokens.

Inspection could reach other members of the party

According to a local media outlet, the DPurgedNam-kuk sold his approximately 800,000 Wemix coins after he was accused of using insider information to acquire them. Some have also suggested that lawmakers did not follow national rules when handling the tokens a few years ago.

The party also said it would thoroughly investigate the matter to uncover possible irregularities in Nam-kuk's actions. While the investigation is initially focused on him, it could later affect other members of the DP.

"If necessary, external experts with expertise could participate in the investigation, as coins are things that are difficult for ordinary people to understand," said spokesman Kwon Chil-seung.

Nam-kuk said he would fully cooperate and sell the stock, which is worth about $700,000 at the time of writing.

"I have received a recommendation from the party to sell my crypto assets. I will implement the recommendation conscientiously. I will transparently pass on the data to the investigation team and carry out the investigation diligently."

Kim Nam-kuk, The Korea Times

Nam-kuk allegedly withdrew the coins before March 2022, before a law requiring crypto companies to report personal information on transfers over 1 million won ($758) was passed.

Lawmakers were also involved in a bill that would delay income taxation of digital assets. Interestingly, this happened several months before he withdrew his Wemix tokens.

Crypto taxation is coming in 2025

The South Korean authorities have expressed their intention to impose a 20 percent levy on profits from cryptocurrency trading from the beginning of 2022. Although the legislation sparked debate among lawmakers, this was the casewell preservedby most locals.

The People Power Partysuggestedin October 2021 that the regulation should come into force with a one-year delay (from January 1, 2023). The group also advocated that people with annual profits of less than $42,000 should be exempt from taxation.

The Democratic Party also tried to postpone the bill. Woong-rae - a member of the DP - claimed that the Asian country has not designed a proper plan focusing on the tax process:

“In a situation where the relevant tax infrastructure is not sufficiently prepared, deferring taxation of virtual assets is no longer an option, but an inevitable situation.”

Finally, the Korean governmentdelayedThe rule is in effect until 2025. It applies to all locals whose crypto winnings exceed $1,900 per year.

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