FSC Draft Rules: Crypto Disclosure Mandated for Korean Companies

FSC Draft Rules: Crypto Disclosure Mandated for Korean Companies

South Korea's Financial Services Commission (FSC) has issued draft rules requiring companies with crypto assets to disclose their holdings in financial reports starting in 2024. The transparency measures, following the Virtual Asset User Protection Act, mandate disclosure of quantity, features, business models, accounting policies, and market value of crypto. Sales of virtual assets will be recognized as profit after fulfilling obligations to holders. Costs related to virtual asset development will not be considered intangible assets. Guidelines for audit procedures are underway.