South Korea banned civil servants from dealing with cryptotrading

This decision summed up the almost two-month epic, which began on January 18, when a member of the South Korean National Assembly reported that some employees were suspected of insider trading.

The Financial Supervision Service (FSS) confirmed the information and launched an investigation. Subsequently, Member of Parliament Chung Dong-yun introduced a bill requiring officials to declare their cryptocurrency income.

Last month, the Commission on Civil Rights and the Fight Against Corruption issued the “Code for the Operation of Cryptocurrency” for all government departments, which includes cryptocurrencies in an article that prohibits officials from using inside information when investing.

Now, according to the local newspaper Maeil Business Newspaper, South Korea “issued a ban on the storage of cryptocurrency and cryptocurrency transactions for all officials.” In a document entitled “Cryptocurrency savings and information on transactions for civil servants”, the Human Resources Department requires that “civil servants refrain from storing cryptocurrency and trading, even if it is not related to their work.” In case of violation of the imposed prohibition, “disciplinary sanctions” may be applied to the employee.

The Financial Services Commission of South Korea (FSC), the Fair Trade Commission (KFTC) and other government agencies already warned employees about the need to “refrain from investing in cryptocurrencies”. In January, the same requirement was brought to the officials head of the Department for Policy Coordination Hong-Nam.

Write: Richard Abermann


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