A member of South Korea’s national legislature may face arrest for allegedly lying about its cryptocurrency.
Federal prosecutors recommended that the lawmaker be sentenced to six months in prison for not disclosing a large portion of his crypto holdings, and for failing to adhere to South Korea’s policy of transparency and accountability of public servants.
A prison sentence
A federal prison could await Kim Nam-kook, a member of South Korea’s National Assembly, for not disclosing all of his cryptocurrency assets, violating the country’s code of conduct for public officials.
Federal prosecutors have accused Kim of willfully failing to report his cryptocurrency holdings, saying he deliberately hid large amounts of digital assets.
During the trial, the prosecution asked Judge Jeong Woo-yong of the 9th Criminal Division of the Seoul Southern District Court to sentence the former Democratic Party lawmaker to six months in prison.
Source: Bloomberg images
According to South Korean prosecutors, Kim mistakenly declared his crypto assets, suggesting that the lawyer should be charged with obstructing official duties.
Public prosecutors said “the accused intended not to mention the coins he had.”
“He prevented the National Assembly Ethics Committee from reviewing the property of members of the National Assembly in a false manner,” added the prosecution team.
A South Korean congressman has been sentenced to six months in prison by prosecutors for hiding his cryptocurrency holdings. He hid cryptocurrency assets worth 9.9 billion won (6.8M USD) and 990 million won (680K USD) in 2021 and 2022, violating the obligation…
– Wu Blockchain (@WuBlockchain) December 18, 2024
Crypto assets over $6M
Kim said he has assets worth only $834,356 in an official declaration to the National Assembly in 2021.
The investigation revealed that the perpetrator had twice hidden his cryptocurrency assets.
In 2021, Kim did not report having crypto assets worth $6.8 million. The attorney also failed to disclose his digital assets worth $680,000 in 2022.
As of today, the market cap of cryptocurrencies stood at $3.47 trillion. Chart: TradingView
“He hid cryptocurrency assets worth 9.9 billion won (6.8M USD) and 990 million won (680K USD) in 2021 and 2022, violating government officials’ obligation to declare asset holdings,” Wu Blockchain said in a post.
Federal prosecutors say the legislator deposited money into the bank to hide the source of his profits, misrepresenting his true assets. They also found that the only crypto conversion left in the estate is declared as his net worth.
Lack of Crypto Tax Policy
Some analysts blame the South Korean government’s inability to implement much-needed cryptocurrency tax legislation.
The new tax law covering crypto assets was supposed to be implemented next year but the government decided to delay the tax policy until 2027.
Under the long-awaited crypto tax law, the government will impose a 20% tax on cryptocurrency profits.
Analysts said the ambiguity surrounding the regulations of cryptocurrencies is likely to increase political tension in the country.
Democratic opposition lawmakers see the delay in implementing the crypto tax as a political tool by the government.
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