In South Korea, currently, there exist no laws against the government officials insider crypto trading. Since the case against an employee came out for violating the sets of crypto insider trading the government is quite worried about the regulations. An employee in South Korea from Financial Supervisory Service (FSS) was accused of crypto insider trading. This case prominently raised the issue of insider trading for the officials using the knowledge of the government’s cryptocurrency regulations. Keeping this scenario in the mind and to prevent the government officials from crypto insider trading, the government is now up with a plan.
The employee of FSS on July 3, 2017, invested around 13 Million won and on December 11 sold more than half of his holdings. After getting the news regarding this case, on December 13 the government declared a new of strict rules which included a ban on crypto trading for the minors and foreigners. No matter the employee is guilty or not, but there exists no punishable law for doing this offence. The government in the case of FSS employee quoted that ‘currently there are no provisions for virtual currency in the regulation.’
However, the government has now proposed a plan to prevent the government officials from crypto insider trading. The South Korean Prime Minister Lee Nak- Yeon ordered to create a new code of conduct which could address crypto trading by public officials. The ‘Code of Conduct Guidelines to Cryptocurrency’ has been issued by the anti-corruption and Civil Rights Commission of South Korea to the government and public agencies. The commission submitted the code of conduct to the government in the last week.
The Code of Conduct Guide to Cryptocurrency is an addition to the Article 12 of the Civil Servant Code of Conduct which states that ‘ the public officials are not allowed to use the information which they learned during their duties to utilise in trading and investing in property which is related to security, real estate etc. They are even not allowed to share this information with someone else and help them to trade and invest.’ However, how much would it affect the government officials is a fact that we all are waiting to see.