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South Korean Public Servants Banned From Crypto Trading


South Korean government has reportedly imposed a ban on public servants from either holding or trading cryptocurrencies.

As per a directive issued by the Personnel Affairs department, officials who are found to be indulging in cryptocurrency activities are subject to disciplinary actions, South Korea's Maeil Business Newspaper reported.

The government document titled, "Virtual currency holdings and transaction-related information for civil servants," is applicable to all government departments in the country.

This is the latest in a series of recent measures taken by the government to discourage its workforce from engaging in virtual currency trading.

In January, the Korean Financial Services Commission (FSC), the Fair Trade Commission, and the Office of Policy Coordinator had warned their employees to refrain from investing in virtual currency.

The Korean Anti-Corruption & Civil Rights Commission issued the "Code of Conduct Guide to Cryptocurrency" to all government departments and public agencies in February.

After it was revealed that some government employees were involved in insider trading and market manipulation using confidential information related to future regulations, a bill was introduced in the country's parliament earlier this year. It requires government officials to declare their cryptocurrency investments.

The Financial Supervisory Service is investigating a complaint that one of its staff, who is a member of a pan-government crypto regulation task force, made a profit of around 7 million won ($6,500) by selling cryptocurrency just ahead of a government announcement in December that proposed to ban minors and nonresident foreigners from trading.

Crypto craze is rampant among civil servants in South Korea, which has emerged as the world's second-largest market for cryptocurrency.

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