From 2024 onwards, the South Korean financial watchdog will mandate all firms in the Asian nation which issue or hold cryptocurrencies to disclose their holdings.

South Korea’s Financial Services Commission (FSC) released a new bill on July 11th which has outlined the necessary disclosure requirements for cryptocurrencies, such as Bitcoin (BTC) or Ethereum (ETH).

This is a step forward towards increasing transparency in the accounting and disclosure of crypto assets, while also serving as a revision of accounting standards which requires firms to disclose virtual asset transactions.

The FSC mentions in the current regulatory draft that the scope of the application of guidelines to be enforced from the beginning of 2024 will also include the reporting of fungible assets based on distributed ledger technology or issued via cryptography, as well as the full disclosure of security tokens under the terms of the Capital Markets Act.

As noted by the FSC, the new accounting supervision guidelines have come into immediate effect, and the revised disclosure benchmark will be in effect from the first of January in 2024. “Early application is possible and is strongly recommended,” the FSC stated.

Sources:

https://cointelegraph.com/news/crypto-south-korea-to-ask-firms-to-disclose-crypto-holdings-from-2024

https://cryptonews.com/news/south-korea-require-firms-disclose-crypto-holdings-starting-2024.htm

https://www.fsc.go.kr/no010101/80379