South Korea to require firms to report crypto holdings from next year
Quick Take
- The financial markets regulator will require firms that issue or own cryptocurrencies to disclose details starting in January 2024 as part of its accounting rules.
- The country just passed legislation last month dedicated to protecting crypto investors.
South Korea will require domestic companies to disclose cryptocurrency holdings from next year as part of new accounting rules, its financial markets regulator said Tuesday.
The country’s Financial Services Commission (FSC) said in a Tuesday statement that companies that issue or hold cryptocurrencies will need to provide detailed crypto disclosures in keeping with fresh accounting standards slated to take effect in January 2024.
The new rules will require crypto issuers to disclose information including token details, business models and internal accounting policies.
Domestic companies that own cryptocurrencies will need to report their holdings’ token classification, book value and market value.
“The government is enhancing accounting transparency in virtual asset transactions by requiring companies to disclose detailed information, following the passage of the Virtual Assets Act in the parliament on June 30,” the FSC said in the statement.
The Korean Accounting Standards Board approved the draft rules on July 7, the FSC added.
New legislation
In June, South Korean lawmakers passed legislation that aim to better protect crypto investors.
The new legislation, comprised of 19 crypto-related bills, gives the FSC and the Bank of Korea the authority to oversee crypto operators and asset custodians.
The new bill also allows authorities to enforce penalties in cases of unfair trading of virtual assets.
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