• South Korean lawmaker Kim Nam-Kuk is under investigation for suspicious crypto transactions, including the withdrawal of 800,000 WEMIX tokens.
• The Financial Intelligence Unit (FIU) submitted these suspicious transactions to the prosecutor’s office.
• Kim was a co-sponsor of an amendment to the Income Tax Act in July 2021 that included a clause delaying taxation of digital assets until 2025.
South Korean Politician Under Investigation
A South Korean legislator from the opposition party, Kim Nam-Kuk, is under investigation after claims that he withdrew 800,000 WEMIX tokens during questionable crypto transactions. The Financial Intelligence Unit (FIU) has informed local prosecutors of these cryptocurrency transactions and identified them as suspicious.
Kim’s Cryptocurrency Holdings
Kim reportedly owned 800,000 Wemix coins worth $4.5 million in early 2022 which were transferred to his cryptocurrency account between January and February and then abruptly withdrawn all of his assets from late February to early March of that same year. The FIU has now submitted these withdrawals to the prosecutor’s office for further investigation.
Kim Denies Breaching Any Laws
Kim has denied breaching any laws by cashing out his tokens as Public Service Ethics Act does not require disclosing virtual asset holdings in South Korea. However, WEMIX was delisted from the country’s most essential exchanges the year before for allegedly providing false information on supply and circulation.
Taxation Amendment Supported by Kim
Kim was also a co-sponsor of an amendment to the Income Tax Act in July 2021 that included a clause delaying taxation on digital assets until 2025. Plans to tax cryptocurrency income and income from virtual assets have been postponed until 2025 due to this amendment sponsored by Kim himself.
Final Thoughts
Withdrawing large amounts of cryptocurrencies can be seen as suspicious activities especially if done suddenly or without proper disclosure – both allegations have been levied at Kim Nam-Kuk who is currently being investigated for his actions by local prosecutors following notification from South Korea’s financial watchdog FIU.