Kim Nam-Kuk, a prominent South Korean lawyer and politician, has agreed to sell his cryptocurrency holdings amidst a conflict of interest that has surrounded his stash. The Democratic Party (DP), of which Nam-Kuk is a member, has also investigated whether he complied with local requirements when acquiring the tokens. The controversy surrounding Nam-Kuk’s cryptocurrency holdings has raised concerns about insider trading and adherence to domestic rules.
Allegations of Insider Trading
The DP has urged Nam-Kuk to sell his approximately 800,000 Wemix coins following allegations that he may have used insider information to acquire them. Furthermore, there are suggestions that the lawmaker did not abide by domestic rules when dealing with the tokens a few years ago. These allegations have raised concerns about the integrity of Nam-Kuk’s actions and have prompted the party to investigate the matter thoroughly.
The DP has announced its intention to investigate the allegations surrounding Nam-Kuk’s cryptocurrency holdings. While the investigation will initially focus on Nam-Kuk, it could potentially extend to other members of the party. The party has stated that outside experts with specialist knowledge may join the investigation if necessary, as cryptocurrencies involve concepts that are often difficult for ordinary people to understand. This suggests that the DP is committed to uncovering any irregularities and maintaining transparency within its ranks.
Nam-Kuk’s Cooperation and Sale of Crypto Assets
In response to the party’s recommendation, Nam-Kuk has stated that he will fully cooperate with the investigation and sell his cryptocurrency assets. The value of his stash is estimated to be approximately $700,000 at the time of writing. Nam-Kuk has expressed his willingness to disclose data to the investigation team transparently and undergo the inquiry faithfully. This cooperative stance indicates his commitment to addressing the conflict of interest concerns and upholding the party’s integrity.
Nam-Kuk supposedly withdrew his Wemix coins before March 2022, anticipating legislation that would require crypto entities to report personal data when transferring amounts exceeding 1 million won ($758). The timing of his withdrawal, just ahead of the implementation of the legislation, has raised further questions regarding compliance with regulations and the potential use of insider knowledge. These details will undoubtedly be scrutinized during the investigation.
Interestingly, Nam-Kuk was also involved in a bill proposing a delay of income taxation on digital assets. This bill was introduced several months before his withdrawal of Wemix tokens. The South Korean government had initially planned to apply a 20% levy on gains made from cryptocurrency trading starting from 2022. However, due to debates and concerns raised by various political groups, including the DP, the implementation was delayed until 2025. The taxation rule will apply to individuals whose crypto profits exceed $1,900 per year.