South Korean Crypto Holdings Now Under Close Scrutiny Ahead of January 31

Key Points:

• South Korea’s Ministry of Personnel Management has instructed all government agencies to reassess restrictions on public officials’ crypto holdings.
• The Ministry emphasized that agencies involved in South Korean crypto policies may face additional scrutiny regarding access to digital asset information.

The South Korean Ministry of Personnel Management ordered all government agencies to review the restrictions imposed on public officials for holding cryptocurrencies, given the revision of the Public Official Ethics Act in December 2023.

Read more: South Korean Congressman Jailed For Concealing Crypto Holdings

South Korean Crypto Holding of Public Officials Under Review

The agencies will have to submit their compliance report on January 31, 2025, paying due regard for crypto-related duty impact.

In particular, the order said that the departments which may involve South Korean crypto policies, regulations, or even economic or industrial activities could be subject to more attention with respect to information access involving digital assets.

The Ministry called on each agency to conduct a self-assessment of crypto restrictions against a backdrop of evolving administrative environments and responsibilities provided under the revised law.

FSC Plans to Introduce Real-Name Corporate Trading Accounts

The Ministry also distributed updated guidelines, including a “Virtual Asset Job-Relevance Checklist,” which classifies roles related to the development of South Korean crypto policies, regulation enforcement, and investigations into crypto.

This would include agencies like the Financial Services Commission (FSC), Financial Supervisory Service (FSS), police, prosecutors, tax offices, and even the Ministry of Strategy and Finance, which may also fall under such regulations.

Meanwhile, the FSC revealed plans to allow companies to invest in digital assets via real-name corporate trading accounts. This move is part of the FSC’s 2025 work plan in pursuit of financial stability while promoting innovation in digital finance.