FSC to Conduct Comprehensive Audit of Virtual Asset Accounting Practices

IconCryptoNewsTerminal Staff13 Jun, 2024

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FSC to Conduct Comprehensive Audit of Virtual Asset Accounting Practices

The Financial Services Commission (FSC) has announced its plans to conduct a thorough audit of virtual asset accounting practices. The audit will focus on examining the appropriateness of accounting treatment by virtual asset issuers, holders, and exchanges. Virtual asset issuers will be expected to disclose details of development, revenue recognition, and reserved tokens in their financial statements. Importantly, the FSC has emphasized that virtual assets that are created but not transferred to others should not be recognized as assets. Exchanges will need to recognize virtual assets entrusted to them by customers as both assets and liabilities if the exchange retains control over the assets. This audit is part of the FSC's broader efforts to strengthen the regulatory framework for virtual assets in South Korea. The FSC will continue to monitor the market and take appropriate measures to protect investors and maintain financial stability.

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