To strengthen regulations on the crypto industry, South Korea introduces a new crypto disclosure bill.
The South Korean government has introduced a bill calling for all firms dealing with cryptocurrencies, like Bitcoin (BTC), to disclose their crypto holdings.
The Financial Services Commission (FSC) of South Korea declared on July 11th the inception of the new legislation aimed at enhancing clarity in crypto assets disclosure and accounting.
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The bill's objective is to bring digital assets in line with existing supervisory regulations that mandate accountability for every crypto-related transaction.
In addition, the regulator clarified that the new guidelines will be applied to digitized securities, or security tokens, under the Capital Markets Act. Assets subject to these guidelines also extend to fungible assets that rely on distributed ledger technology or comparable technology and those that utilize cryptography.
The regulator revealed that South Korea’s latest version of crypto accounting supervision guidelines takes effect immediately. However, the modified disclosure norm will come into force only from the first day of 2024.
This regulatory move coincides with reports suggesting the FSC demanded its internal staff to disclose their crypto holdings. The directive reportedly applies to those who currently have crypto-related roles and those who have worked in such positions over the past six months.
This isn't South Korea's first instance of introducing crypto disclosure rules. High-ranking government officials and lawmakers are already mandated to declare their cryptocurrency assets.
The law, widely known as the "Kim Nam-guk Prevention Law," was passed unanimously by South Korea's National Assembly in response to a public official's scandal regarding market manipulation and significant crypto transactions.
The legislative reform strengthens South Korea's regulatory framework concerning crypto holdings, signaling a more transparent and accountable future for the nation's digital currency landscape.
