South Korea de facto ban: Trading in cryptocurrency is now a violation of civil servants’ law

The government of South Korea is reported to have issued a ban on virtual currency holdings and transactions to all government officials. All the government officials have been de facto banned from engaging in cryptocurrency trading. Similarly, even the officials participating in crypto activities not related to their jobs have been affected and will not be allowed to take part in any trading activities involving the digital assets.

The published document, entitled “Virtual currency holdings and transaction-related information for civil servants,” explained:

“The personnel department requested that they [civil servants] refrain from holding and trading virtual currency even if there is no job relevance…This is the first time the government has formulated a virtual currency ban for all public officials.”

The publication elaborated that the law will be applied to any public officials found engaging in cryptocurrency trading activities. Especially if they are found doing so during work hours, stating that they will be “in violation of the prohibition of forbearance obligations under the civil servants’ law.” Disciplinary action will be taken on account of such activities.

Some government organizations, like the Financial Services Commission (FSC) and the Trade Fair Commission, already issued warnings to their employees to refrain from making investments in cryptocurrencies.