Lawmaker in South Korea quits party over cryptocurrency investment scandal


It has been reported that a politician in the nation sold more than $4 million worth of cryptocurrencies just before the “Travel Rule” was implemented by the Financial Action Task Force.

Kim Nam-kuk, a politician in South Korea, has announced his resignation from the Democratic Party due to allegations that he engaged in cryptocurrency trading while drafting laws pertaining to digital assets. The politician said that he will independently pursue evidence of his innocence.

Kim claims that the weight of the scandal would be lifted from party members with his resignation. He thinks it’s important that the party isn’t distracted by the controversy at this critical juncture. Kim made it clear that while quitting the party, he would continue to support the political group.

Meanwhile, the politician assured them that, as an impartial lawmaker, he would keep working to expose the truth. It was his intention to “stand up to unfair political offences to the end and reveal the truth,” he said.

Kim has accused the media of spreading false information about his crypto operations and has vowed to take them on.

On March 1, 2023, the government will begin enforcing the “Travel Rule” from the Financial Action Task Force. On May 8, the politician was accused of selling off crypto assets worth over $4 million before the country began enforcing the rule. The lawmaker remains under investigation by authorities for a number of suspected offenses.

The Central Bank of South Korea (the “BoK”) has been steadily increasing the intensity of its crypto monitoring activities. The Central Bank of Korea was given permission to look into cryptocurrency firms on April 24. The bank will then be able to make requests to local crypto operators for transaction data. The central bank and Samsung Electronics began studying the CBDC’s offline capabilities on May 15.

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