Home News South Korean officials quit jobs to join crypto industry

South Korean officials quit jobs to join crypto industry

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In South Korea, an increasing number of public officials are leaving for the cryptocurrency industry, which raises ethical questions. A member of the National Assembly Roh Woong-rae expressed this opinion in a comment by The Korea Herald.

Thus, according to the legislator, recently a grade 5 official from the Financial Services Commission (FSC) quit, going to work at Bithumb, one of the largest crypto exchanges in the country.

Officials in South Korea are ranked by seniority up to the highest 1st class, according to the law, only officials from rank 4 and above are not allowed to transfer to private companies related to their former work for three years after dismissal. However, the congressman considers the case of Bithumb “extremely inappropriate”; since the government official comes from the department directly regulating cryptocurrencies.

“Recruiting former and current personnel from the FSC is very unethical”

Roh Woong-rae also said that a high-ranking official from the Fair Trade Commission (the country’s antimonopoly authority) got a job at another major exchange — Upbit. In the civil service, he was responsible for the fintech sector.

Furthermore, the Ethics Committee found no problems in the transition, the congressman stressed. Although the employee dealt with issues closely related to virtual assets. According to Woong-rae, the agency did not disclose the transcript of the meeting on this occasion.

He added that the staff flow is not limited to financial regulators. According to him, the police officer who led the group on cryptocurrency-related crimes is preparing to switch to Upbit. According to the legislator, in such cases, state institutions cover former employees. “Recruiting former and current personnel from the FSC and the police, which are in charge of regulations, is very unethical, in that they are more likely to serve as a shield than experts,” the congressman said. He considers it necessary to expand the employment check to ex-officials of the 7th grade. Moreover, to publish records of the consideration of these cases.

Brian Brooks and Christopher Giancarlo

Recall that in the United States, the former chairman of the U.S. Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, after his resignation, became a member of the board of directors of the BlockFi crypto lending platform.

During his time as chairman of CFTC, “Crypto Dad” was the first independent director of the BlockFi board. His abrupt exit occurs at a critical setback for BlockFi. He left the post four months later. But continued to work with the company as a consultant.

The former head of the Office of the Comptroller of the Currency (OCC), Brian Brooks, first joined the board of directors of the startup Spring Labs, then headed Binance.US. After this, he became Chief Executive Officer of the mining company Bitfury Group.

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