South Korea’s parliamentary ethics subcommittee has declined a proposal for the expulsion of Kim Nam-kuk, a former member of the main opposition Democratic Party, according to local news agency Yonhap on August 30.
On August 29, the subcommittee dismissed the motion after a split decision of 3–3 between the ruling People Power Party (PPP) and the Democratic Party (DP).
The report highlights that a majority vote was necessary for the motion’s approval.
Earlier this year, Kim faced backlash when it was revealed that he had once possessed a minimum of $4.5 million worth of Wemix (WEMIX) tokens, which were developed by South Korean blockchain game developer Wemade.
The tokens had been tradable on major South Korean exchanges until a local court ordered their removal from platforms in late 2022.
Kim’s involvement in Wemix investments raised serious concerns about potential conflicts of interest, exploitation of insider information, and potential money laundering.
This case played a pivotal role in prompting the establishment of a legal effort that mandates officials in South Korea to disclose their cryptocurrency holdings, including assets like Bitcoin.
South Korea’s Financial Services Commission announced in July its intention to introduce a new bill, effective from 2024, requiring all cryptocurrency-issuing or -holding companies to disclose their cryptocurrency holdings.
In a related development, the city of Cheongju in South Korea revealed in mid-August its plans to seize cryptocurrency from local residents who are behind on their taxes.
This move will necessitate cryptocurrency exchanges such as Upbit and Bithumb to report on individuals involved in tax evasion.
These events reflect a growing trend in South Korea towards increased transparency in the cryptocurrency sphere.
While the parliamentary ethics subcommittee’s rejection of Kim Nam-kuk’s expulsion motion might spark further debate, the broader context underscores the nation’s efforts to regulate and monitor cryptocurrency activities, aiming to mitigate potential risks and unlawful practices.