South Korean corporations to reveal crypto holdings from 2024

Key takeaways

• South Korean monetary regulator needs corporations to reveal their crypto belongings of their monetary statements.

• The goal is to enhance accounting transparency amongst corporations working within the nation.

South Korea introduces a brand new crypto invoice.

South Korea would quickly require corporations 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, corporations that maintain cryptocurrencies can be required to reveal their holdings beginning in 2024. 

Per the brand new guidelines, corporations 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 may also want to offer different data resembling earnings, 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) stated it’s making this transfer to enhance accounting transparency following the passing of the Digital Asset Consumer Safety Act final month.

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

Moreover, the regulatory company stated prices incurred whereas growing digital belongings and platforms wouldn’t be categorized as intangible belongings. 

South Korea stays one of many nations on the earth with clear cryptocurrency rules. 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 belongings.