[Reporter’s Notebook] From Kim Nam-guk to Kidnapping and Murder... The Butterfly Effect of 'Neglecting Cryptocurrency'

The cryptocurrency storm has swept into the political arena. Kim Nam-guk, a member of the Democratic Party of Korea, has been embroiled in allegations that he held and then withdrew about 800,000 WEMIX coins. He claims he moved them to another cryptocurrency exchange and only used real-name accounts, asserting his innocence. However, criticism of a 'conflict of interest' has arisen. Kim was listed as a sponsor of the 2021 virtual asset tax deferral bill (amendment to the Income Tax Act), raising suspicions that he may have sought personal gain using his position as a lawmaker.

Last month, the nation was shaken by a coin kidnapping and murder case that occurred in Gangnam, Seoul. 'Market manipulation' led to bloodshed. The interests of a group investing in and manipulating the price of the cryptocurrency FurEver became entangled, causing a fallout that escalated to kidnapping and murder.

At first glance, these seem like separate issues, but the essence is 'neglect of cryptocurrency.' Let's go back to 2021. As the cryptocurrency craze surged and many people earned tens of millions of won in capital gains, the government sought to tax cryptocurrency capital gains and establish related regulations. Cryptocurrency investors pushed back.

At this point, the political sphere, mindful of cryptocurrency investors, neglected the problem. With the presidential election approaching, the National Assembly did not enact necessary regulations. At that time, presidential candidates Yoon Seok-yeol and Lee Jae-myung pledged to delay cryptocurrency taxation. Meanwhile, the cryptocurrency market began to turn into a lawless zone rife with illegal and illicit activities.

Recently, legislation for the cryptocurrency industry is being promoted, but concerns remain. The 'Virtual Asset Act,' aimed at protecting investors, passed the National Assembly's Political Affairs Committee's bill review subcommittee on the 25th of last month. It places the Financial Services Commission as the supervisory body and includes provisions for severe punishment of market manipulation. However, doubts about its effectiveness persist. The Financial Services Commission, already responsible for overseeing the entire domestic financial and securities markets, faces a cryptocurrency market that is too large to monitor additionally. As of the end of last year, the daily average market capitalization of cryptocurrencies circulating domestically was 3 trillion won.

Simply designating a single supervisory body and enacting laws that impose harsh penalties "if caught" will not be enough to rectify the cryptocurrency market, where illegal and illicit activities are already rampant. Although belated, only by thoroughly and effectively overhauling the entire related system and regulations from now on can the cryptocurrency market be normalized.

This content was produced with the assistance of AI translation services.