important point

  • South Korean financial regulators require companies to disclose crypto assets in their financial statements.

  • Its purpose is to improve accounting transparency among companies operating in the country.

South Korea introduces new cryptocurrency bill.

South Korea will soon require companies that own or issue cryptocurrencies to disclose their holdings in their financial statements.

The country’s financial regulator announced this draft It was approved on Tuesday, and if approved, companies holding cryptocurrencies will be required to disclose their holdings from 2024.

The new rules require companies to provide investors with information on their cryptocurrency sales volume, characteristics, business model and accounting policies.

Companies must also provide other information such as profits, volumes and market value of their cryptocurrencies.

South Korea aims to improve accounting transparency

Commenting on the latest cryptocurrency news, the Financial Services Commission (FSC) said it is taking the step to improve accounting transparency following the passage of the Crypto Users Protection Act last month.

In the past, companies and auditors have disagreed on the timing and criteria for determining whether selling cryptocurrencies to customers is considered profitable. However, the new rules stipulate that if a company sells cryptocurrencies or other crypto assets, the sale will be recognized as profit after it has fulfilled its obligations to the holder.

Additionally, the regulator said costs incurred during the development of virtual assets and platforms are not classified as intangible assets.

South Korea remains one of the countries in the world with clear cryptocurrency regulations. Parliament in May approved the bill This obliges South Korean authorities to disclose their cryptocurrency holdings.

The bill would require government officials to declare all cryptocurrency holdings above $760. This requirement was already in place for assets such as cash, stocks and bonds.

By Jules

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