South Korea Requires Crypto Companies To Disclose Holdings
In a bid to enhance transparency in the realm of virtual asset transactions, South Korea has implemented new regulations that mandate crypto companies to disclose their holdings. The companies are now obliged to provide comprehensive information encompassing the quantity, characteristics, business models, and accounting policies associated with the trading of digital currencies.
Furthermore, starting from the year 2024, these companies must reveal their profits, volume, and market value of cryptocurrencies. The announcement made by the Financial Services Commission also highlighted that costs incurred in the development of virtual assets and related platforms will not be recognized as intangible assets under the new rules. This particular aspect has sparked discussions among domestic accounting experts over potential accounting uncertainties, which have been a topic of deliberation for the past year.
The introduction of these regulations aligns with the passage of the Virtual Assets Act in the parliament on June 30. The government aims to address the need for heightened accounting transparency in virtual asset transactions, thereby instilling greater trust and confidence in the crypto industry.
In June, legislation was passed in South Korea with the aim of providing enhanced protection for crypto investors.
Comprising a set of 19 bills specifically related to cryptocurrencies, the new legislation empowers the Financial Services Commission (FSC) and the Bank of Korea to regulate and supervise crypto operators and asset custodians.
Additionally, the newly enacted bill grants authorities the ability to impose penalties in instances of unfair trading involving virtual assets. This provision strengthens the regulatory framework and serves as a deterrent against fraudulent practices within the crypto market.
The introduction of these regulations aligns with the passage of the Virtual Assets Act in the parliament on June 30. The government aims to address the need for heightened accounting transparency in virtual asset transactions, thereby instilling greater trust and confidence in the crypto industry.
In June, legislation was passed in South Korea with the aim of providing enhanced protection for crypto investors.
Comprising a set of 19 bills specifically related to cryptocurrencies, the new legislation empowers the Financial Services Commission (FSC) and the Bank of Korea to regulate and supervise crypto operators and asset custodians.
Additionally, the newly enacted bill grants authorities the ability to impose penalties in instances of unfair trading involving virtual assets. This provision strengthens the regulatory framework and serves as a deterrent against fraudulent practices within the crypto market.
