Korean Financial Services Commission (FSC) Chairman Eun Sung-soo has instructed FSC officials who own crypto to submit reports on their investments by May 7.
The FSC employees to be reported are those who manage technical developments in virtual currencies, those responsible for drafting and enforcing virtual currency laws, and those who report on and manage crypto exchanges .
A Korea Times article pointed out the relative lack of regulation surrounding FSC officials’ investments in cryptocurrencies compared to traditional financial products.
While FSC employees are expected to notify Chairman Sung-soo if they have speculated on crypto, and are prohibited from making investments using information obtained before the public through their privileged position, noted Korea Times reporter, Lee Kyung-min, soft punishments. for policy violations:
“These measures are not binding and the penalties for violating them are not strong.”
The FSC chairman recently drew the ire of South Korea’s crypto community after urging adults not to set a negative example to younger generations through risky speculation.
“Adults are responsible for leading young people who are going in the wrong direction. It’s too risky to trade them given their high price fluctuations, ”he said.
Due to public backlash, nearly 130,000 residents have signed an online petition calling on Sung-soo to resign after the comments, the petition reading:
“It is more than condescending and hypocritical for Eun to lecture the hard-working young people of today who find it unimaginably difficult to own a home, let alone have any kind of financial assets. real estate values have been rising in recent years. He has no status to lecture us about what is right and wrong. “
South Korea recently sought to strengthen its regulatory oversight of crypto assets, with the National Assembly passing a bill in March requiring permits for local crypto exchanges based on strict identity verification.
Companies processing crypto assets will also face severe penalties for failing to comply with reporting requirements, with the FSC facing up to five years in prison for reporting failure.
In February, Cointelegraph reported that South Korea’s Treasury Department had accelerated the introduction of a controversial 20% tax on crypto profits of more than $ 2,300, which is now due to be enacted on January 1, 2022.