Financial statements must include crypto: South Korea regulator

Companies across South Korea must start disclosing their crypto holdings as part of standard financial statements

article-image

railway fx/Shutterstock modified by Blockworks

share

Companies across South Korea must publicly disclose their crypto holdings and issuances starting next year.

Financial statements — specifically their commentary sections — should reportedly include the cryptocurrencies they hold or issue, their anticipated monetary value and associated business models.

With this move, South Korea’s Financial Services Commission (FSC) is attempting to bring crypto accounting standards in line with traditional financial reporting.

“With the advent of blockchain-based technologies, transactions using digital assets have flourished and their impact on corporate accounting has also increased,” the FSC said per The Korea Times.

Financial statements have been lacking in accurate details regarding corporate ownership of crypto, the regulator said. 

The development forms part of a broader tightening of regulatory measures aimed at digital assets, as a crackdown in the US persists alongside introduction of definitive measures in the EU.

Late last month, South Korea’s parliament passed the Virtual Asset Protection Act to enforce laws against market manipulation and curb insider trading. That law, the FSC reportedly said, led to the further changes to digital asset accounting practices.

South Korea is also mulling changes that would require high-ranking officials and politicians to disclose their crypto holdings following a scandal in May. 

The country is often recognized as Asia’s epicenter for crypto activity. It’s estimated the Korean market drives nearly 30% of the total global crypto trading activity.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Former White House crypto official Bo Hines is expected to be the CEO of the new project

article-image

In bonds, stablecoins and billionaires, a reminder of what makes crypto special

article-image

21Shares exec says CPI and PPI data supports a Fed rate cut, with market leaning toward a 25bps decrease

article-image

The Ethereum co-founder suggested LINEA holders would be eligible for other airdrops in cryptic tweet

article-image

The layer-2’s biggest release yet brings benefits — but a post-upgrade outage caused a chain reorg

article-image

Crypto is shifting into risk-on mode — pump.fun dominates meme activity, while Lido leans on treasury maneuvers