South Korea is facing political unrest after reports of possible conflicts of interest within the crypto sector. Democratic Party leader Kim Byung-kee has come under fire after media suggested he used his political influence in an issue involving his son.
The allegations are drawing extra attention because they touch on the government’s role in overseeing the fast-growing cryptocurrency market, a topic that has long been the subject of debate in South Korea.
Allegations surrounding crypto exchanges and political influence
According to the South Korean newspaper Kyunghyang Shinmun, Kim has been critical of Upbit, the country’s largest crypto exchange, in parliament. Upbit is operated by Dunamu, a company that has a dominant position in the South Korean crypto market.
At the same time, one of Kim’s sons reportedly got a job at Bithumb, a competing crypto exchange. That simultaneous progression has raised questions about possible conflicts of interest, especially given Kim’s position on the National Assembly’s Political Affairs Committee.
Concerns about Dunamu’s position of power
The report states that Kim instructed his aides to sharply criticize Dunamu. The reason for this is said to be concerns about a possible monopoly position, after technology company Naver agreed to the acquisition of Dunamu in November for an amount of approximately $ 10 billion.
That takeover is not yet final and must first be approved by regulators. It is precisely this ongoing assessment that makes the timing of Kim’s criticism extra sensitive, critics say.
Disclaimer of Conflict of Interest
Kim Byung-kee has strongly rejected the accusations. According to him, his political work is completely separate from his son’s career and he had no influence whatsoever on his appointment.
He calls it “very regrettable” that his parliamentary activities, which according to him are conducted through open and formal procedures, are associated with his son’s job in the crypto sector.
Bithumb’s response and broader context
Bithumb has also responded to the reports. A company spokesperson emphasized that the recruitment process was transparent and fair. In addition, the company stated that concerns about monopoly formation in the crypto market have been the subject of political debate since 2021.
The issue comes against a broader backdrop of uncertainty over cryptocurrency regulation in South Korea. While the United States passed clear legislation for stablecoins earlier this year, discussions between South Korean regulators and the central bank stalled in November.
New legislation in preparation
The South Korean ruling party is now working on a new bill that should better regulate the crypto market. That proposal is expected to be presented in January, after an important regulatory deadline was previously missed.
With new rules, the government hopes to provide more clarity for companies, investors and consumers in a market that continues to develop rapidly.
Source: https://newsbit.nl/zuid-koreaanse-politicus-onder-vuur-na-beschuldigingen-van-belangenverstrengeling-in-cryptosector/
