In a significant move, watchdog the Financial Services Commission (FSC), has mandated more exhaustive crypto disclosures from the year 2024. This new development seeks to transform the domestic cryptocurrency sector with increased transparency. Companies issuing or holding cryptocurrencies need to update key details in their financial declarations. The new protocls, which kick in from January 2024, consist of two key components. Primarily, cryptocurrency issuers must submit conclusive data about their tokens – together with their business models and internal policies related to cryptocurrency revenues and profits.
An integral component of the guidelines settled by the Korea Accounting Standards Board on July 7?, concerns the identification of advantage from the sale of cryptocurrencies. The regulations bring clarity over proceedings for recognizing immediate profits and barring any prospects of uncertainty, rules out any revenue prior to clearance of sharing of benefits and bonus with the cryptocurrency holder. In addition, the FSC strives to accelerate the growth of the domestic crypto sector, a market characterized by South Korean cryptocurrency investors.
Quoting Globalwary?, an online digital asset data system, ?, South Korea’s won was the 3rd prominent currency in exchanges during 2022, after the U.S. dollar and the Japanese yen. Impertive to this initiative, it has been solemnly reported on drug money ?, undertaken through crypto, there has been a threefold increase in illicit addresses, from $5 billion in 2017 to a staggering $20 billion in 2022.
Culminating these new regulations should have a positive effect on the bitcoin sector and should resume stipulations for a increased accountancy standard for investors.
