South Korea to Mandate Companies to Report Crypto Holdings
The South Korean government is intensifying its regulatory efforts in the cryptocurrency industry by introducing new rules on asset disclosure.
On July 11, the Financial Services Commission (FSC) of South Korea announced a new bill that mandates all firms involved in issuing or holding cryptocurrencies such as Bitcoin (BTC) to disclose their cryptocurrency holdings.
According to the FSC, after reviewing relevant proposals, it has given the green light to an exposure draft bill that enforces mandatory disclosure requirements for crypto assets.
The objective of these new measures is to improve transparency in accounting and disclosure of crypto assets, aligning with supervision guidelines that require accounting for every transaction involving cryptocurrencies. Additionally, the initiative aims to revise accounting standards to include disclosure obligations for virtual asset transactions.
In the current draft version of South Korea’s crypto accounting supervision guidelines, the FSC specifies that the reporting scope for crypto assets includes fungible assets built on distributed ledger technology or similar technologies, as well as those issued using cryptography. The guidelines also encompass security tokens, which are digitized securities falling under the purview of the Capital Markets Act.
These new asset disclosure rules reflect South Korea’s commitment to strengthening regulations within the cryptocurrency sector to promote transparency and enhance oversight.