South Korea’s Lawmaker Faces Prison for Hiding Crypto Profits

A former Democratic Party lawmaker of Korea, Kim Nam-guk can face six months in prison for allegedly concealing millions in cryptocurrency holdings. Accusations indicate that he has hidden his assets during the 2021 and 2022 financial disclosure.  

Kim knowingly deleted the key details about his cryptocurrency assets, a total of 9.9 billion  (approximately $6.8 million) which he won in 2021.

According to the report by a local news outlet Donga, Kim did not declare his crypto profits and assets won by him worth 1.2 billion won (approximately $835,000). In 2022, he was charged for repeating the violation, hiding an additional 990 million won ($689,000). 

The allegations also claim that Kim converted undeclared crypto earnings into other digital tokens and moved those funds into bank accounts to hide the full amount of his wealth. Reports have inquired about a six-month prison for the former Democratic Party lawmaker. 

Kim’s case highlights South Korea’s unclear relationship with crypto regulations. The country, known for its strict oversight of digital assets, has yet to implement a long-assumed crypto tax due to many political disagreements and changing legislative priorities.