Kim Nam-kuk, a member of South Korea’s National Assembly, is accused of clearing more than $4 million worth of crypto before the country’s lawmakers approved the “travel law” of the Financial Action Task Force.
According to a May 8 report from the Korea Times, authorities at the Korea Financial Intelligence Unit are investigating Kim for trading about 6 billion yuan ($4.5 billion) in crypto assets before South Korea introduces travel restrictions in March 2022. It was reported that the MP said that he did not deposit the assets but transferred them to another exchange, saying that he did not want to report such a story.
As a member of the South Korean National Assembly, Kim has the power to deal with digital asset laws, apparently supporting a law that proposes to suspend the 20% tax on crypto profits from 2023 to 2025. Kim reportedly denied any possible conflict between managing crypto assets and his portfolio and their decisions as lawmakers.
“This is a huge moral hazard,” said Daegu City Mayor Hong Joon-pyo. “He should leave his job as a legislator and focus on waiting for the market instead. On top of that, he is in front of delaying the tax of crypto, which can be seen as abuse of his legislative power to protect his property.”
The news comes as US lawmakers are considering banning members of Congress from investing in stocks and, potentially, digital assets. At the time of its publication, US representatives and senators are required to report such investments, but are not required to refrain from voting or excluding disputes that may have an interest in laws or regulations.
South Korea has joined the many death toll reports of the 2022 crypto market crash because Terraform Labs co-founder and former CEO Do Kwon is a citizen of the Asian country. After Kwon was arrested in Montenegro in March, South Korean authorities requested his extradition, as many of the crimes he was accused of involved citizens of the country.
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