South Korean Legislator Quits Political Party Over Crypto Scandal

Kim Nam-kuk, a South Korean legislator, recently announced his resignation from the Democratic Party of Korea due to his suspected crypto activities while legislating on digital assets. 

Kim Leaves South Korean Party

The politician stated that he would try to show that he was innocent on his own. Kim claims that his leaving will help relieve those in the party of the stress caused by the scandal. 

He feels that the concerns should no longer have an impact on the party at this critical juncture. While leaving the party, the South Korean legislator stated his intention to continue to support the political faction.

Kim to Work as Independent Legislator

Meanwhile, the lawmaker stated that he will continue to work as an independent legislator to bring the truth to light. He stated: 

“I will stand up to the end to unfair political offenses and reveal the truth.”

Kim reprimanded the media for publishing on his cryptocurrency operations, claiming that the claims were not founded on facts. The South Korean politician was charged on May 8 with selling more than $4 million worth of cryptocurrency assets ahead of the country’s implementation of the Financial Action Task Force’s “Travel Rule” in March 2023. 

Authorities are still looking into the lawmaker for suspected offenses. 

Rise of Crypto in the Region

Notably, owing to a recent local media report, citizens conducted transactions worth 5.6 trillion South Korean won ($4.3 billion) via unlicensed foreign exchange firms in 2022. The transactions comprised the acquisition of foreign digital assets with the goal of reselling them in the nation later.

The government, on the other hand, has increased security regulations for cryptocurrency trading platforms. 

South Korean Regulators Aim to Gain Control Over Crypto Firms

South Korean officials recommended additional amendments to the Digital Assets Bill in November in order to gain more control over bitcoin exchanges.

The government has also established a specific task force to investigate crypto-related crimes and develop prevention measures. As a result, sixteen persons were detained in South Korea by Customs authorities accused of partaking in unlawful foreign currency operations.