South Korean firms to reveal crypto holdings from 2024

Key takeaways

• South Korean monetary regulator needs firms to reveal their crypto property of their monetary statements.

• The intention is to enhance accounting transparency amongst firms working within the nation.

South Korea introduces a brand new crypto invoice.

South Korea would quickly require firms that personal or concern cryptocurrencies to reveal their holdings in monetary statements. 

The nation’s monetary regulator launched this draft on Tuesday, and if authorized, firms that maintain cryptocurrencies can be required to reveal their holdings beginning in 2024. 

Per the brand new guidelines, firms can be required to offer buyers with details about the amount, traits, enterprise fashions and accounting insurance policies relating to the sale of cryptocurrencies. 

Firms will even want to offer different data reminiscent of income, quantity and market worth of their crypto.

South Korea seeks to spice up accounting transparency

Whereas commenting on this newest cryptocurrency information, the Monetary Providers Fee (FSC) mentioned it’s making this transfer to enhance accounting transparency following the passing of the Digital Asset Consumer Safety Act final month.

Prior to now, firms and auditors differed relating to the timing and standards for figuring out whether or not the sale of cryptocurrencies to prospects is thought to be revenue. Nevertheless, the brand new guidelines stipulate that if firms promote cryptocurrencies and different digital property, the gross sales can be recognised as revenue after the corporate fulfills obligations to its holders.

Moreover, the regulatory company mentioned prices incurred whereas creating digital property and platforms wouldn’t be categorized as intangible property. 

South Korea stays one of many nations on this planet with clear cryptocurrency laws. In Might, the Nationwide Meeting authorized a invoice that requires South Korean officers to reveal their cryptocurrency holdings. 

Per the invoice, authorities officers should declare all crypto holdings that quantity to $760 or extra. The requirement was already in place for money, shares, and bonds, amongst different property.

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