South Korea's financial market regulator, the Financial Services Commission (FSC),

 

South Korea's financial market regulator, the Financial Services Commission (FSC), has announced new accounting standards that mandate domestic companies issuing or holding cryptocurrencies to report their virtual assets in their financial statements.  The new standards will come into force as of January 2024.  Under the new guidelines, cryptocurrency issuers will have to provide detailed information about their holdings, including the amount and characteristics of the tokens, business models, internal accounting policies, and the profits from the sale of these crypto assets. South Korean companies owning crypto for investment purposes will also need to disclose information about their tokens' classification, book value, and market value.  The FSC stated that the new rules aim to enhance accounting transparency in the digital asset market in the country.  The new guidelines were approved by the Korean Accounting Standards Board on July 7.  South Korea's National Assembly also passed legislation dubbed the Virtual Assets Act on June 30 to better protect crypto investors.  The act authorized the FSC and the Bank of Korea, South Korea's central bank, to supervise the crypto service providers and virtual asset custodians.  The bill also gave the authorities the warrant to enforce penalties in case of a potential violation.