Democratic Party lawmaker Kim Young-hwan has introduced a new amendment to South Korea’s Improper Solicitation and Graft Act. This proposal aims to combat crypto insider trading and bribery by expanding the legal definition of “improper solicitation” to include virtual assets and the sharing of insider information. The amendment reflects South Korea’s broader push to strengthen cryptocurrency regulations and protect investors from misuse and corruption.
Currently, South Korean law identifies financial benefits such as money, securities, real estate, and memberships as forms of bribery. However, it notably excludes cryptocurrencies, creating a regulatory gap that this amendment seeks to address. That is why, according to Kim Young-hwan’s proposal, cryptocurrencies and other types of financial assets would be included in the definition of improper solicitation. In the lawmaker’s words, eliminating this possibility is crucial for nobody to use digital currencies for personal benefits or bribery.
Also Read: South Korea Lawmaker Investigated over Questionable Crypto Transfers
Expanding the Scope of Bribery and Corruption Protections
Apart from cryptocurrencies, the amendment also expands the category of improper solicitation with bribery and corruption in other related formats. Thus, by banning the disclosure of information for personal gains, the law seeks to maintain the transparency and accountability of the cryptocurrency market. If implemented, there will be a drastic shift towards increased regulation of activities in the crypto market in South Korea.
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This action follows several recent government steps to tighten control over South Korea’s crypto industry—even the earlier Virtual Asset Users Protection Act improved safety for investors in some ways. In addition, South Korea has been dampening crypto exchanges and adopting smart taxation measures that augment market regulations.
The Financial Supervisory Service (FSS) has also firmly opposed illegal crypto activities, recently implementing a zero-tolerance policy. FSS Governor Lee Bok-hyun has emphasized the importance of clamping down on illicit trading in the crypto space as part of the country’s regulatory crackdown.
Conclusion
Kim Young-hwan’s proposed amendment to include cryptocurrencies in South Korea’s bribery laws represents a critical move to enhance the nation’s regulatory framework. As the government tightens its grip on crypto activities, this proposal will bring greater transparency and accountability to the digital asset market.
Also Read: South Korea Boosts Crypto Crime Fight with New Investigation Division and Strict User Protection Law
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.