From January 2024, FCS will require firms to disclose holdings of digital assets on their balance sheets. This follows from updated accounting rules.
The information includes an assessment and description of tokens, the business model, and accounting policy.
The requirements will also apply to cryptocurrency issuers. They will additionally be required to disclose token classification, as well as the tokens’ market value and book value.
The initiative aims to enhance transparency in reporting. The amendments were approved by the Korea Accounting Standards Board.
The push for approval was sparked by the collapse of the Terra ecosystem, backed by Do Kwon, a South Korean citizen.
In June 2023, the South Korean parliament adopted a law protecting users of digital assets.
The document consolidated 19 separate bills related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as insider trading, market manipulation, and unfair trading practices.