Home » Business » Taiwan urges public servants to disclose their digital asset holdings
Taiwan’s Ministry of Justice has hinted that public servants might be required to make public their digital currency assets in accordance with the nation’s code of ethics.
In a statement, the Taiwanese government confirmed that it deliberated extended disclosure rules for public officials to digital currencies. Under local property declaration laws, government employees and elected officials are expected to declare assets exceeding NT$1 million (US$32,900) to “ensure the integrity of the conduct of public servants.”
A timeline for the inclusion of digital currencies for property declaration was not announced, but experts look to a tentative date in November for its enforcement. Taiwanese public servants are typically expected to file annual holdings in November, and regulators might be keen on beating the November deadline to bring the proposal into operation.
Public officials affected by the government’s proposal include the President, Vice President, officers of political parties, principals of public schools, judges, prosecutors, and legislators. Others include administrators of judicial police affairs and taxation, governors, and officers exceeding the rank of colonel, among others.
In the event that the proposal is passed into law, affected public officers will be required to declare their digital currency holdings within three months of their inauguration and make the same disclosure within two months of leaving the position. Failure to comply with the rules will result in the payment of stiff fines by public officials, with the power of enforcement being bestowed on the Examination Yuan and Control Yuan.
In 2021, Taiwan passed new anti-money laundering rules for digital currency firms, requiring exchanges to report transactions above US$17,900. Since the passage of the money laundering rule, the country’s digital currency regulations have been stuck in the doldrums of inactivity for almost 18 months.
Disclosures for public officials
Several jurisdictions have different rules guiding digital currency disclosures for government officials to ensure transparency. In the U.S., the Office of Government Ethics (OGE) is in charge of making the operational rules, requiring executive branch members to report their digital currency holdings.
“Further, the reporting and conflict of interest principles set forth herein apply equally to other digital assets, such as coins and tokens received in connection with initial coin offerings or issued or distributed using distributed ledger or blockchain technology,” said the OGE.
There are plans by the OGE to widen the requirement to other arms of government, with the main reason being the prevention of scenarios of a “conflict of interest.”
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Taiwan is calling for public servants to be transparent with their digital asset holdings after the Taiwanese government issued circular amendments earlier this week.
The amendments stress the importance of public servants’ duty of diligence to ensure that the public trusts in their integrity both as individuals and in their workplace. The circular also encourages public servants to voluntarily disclose their digital asset holdings as a form of transparency.
The Taiwanese government emphasized the risk of potential conflicts of interests involving digital assets that public servants may possess. This applies especially to digital assets such as cryptocurrency, which can often be highly volatile and subject to price manipulation.
In response to these filings, the government has also introduced strict regulations surrounding digital assets. For instance, public servants must comply with disclosure and reporting rules when they purchase, transfer, or sell digital assets. Furthermore, they are also required to maintain records of these transactions in order to provide clear and transparent evidence to the public and the government.
The digital asset regulations also come with a number of strict penalties that can be imposed if any of the rules are violated. These include suspension or dismissal from their government position, along with potential criminal charges if the circumstances deemed appropriate.
In conclusion, the Taiwanese government has done their part in advocating for digital asset transparency in government. Now, it is up to public servants to comply with the rules and exercise their duty of diligence, in order to ensure the public trust in their integrity.
