Sebastian Sinclair

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.



&#8220;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 <a href="https://www.koreatimes.co.kr/www/nation/2023/07/602_354718.html" target="_blank" rel="noreferrer noopener">per</a> The Korea Times.



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



The development forms part of a broader tightening of regulatory measures aimed at digital assets, as a <a href="https://blockworks.co/news/crypto-crackdown-got-you-down" target="_blank" rel="noreferrer noopener">crackdown in the US</a> persists alongside introduction of <a href="https://blockworks.co/news/eu-members-reach-agreement-on-mica" target="_blank" rel="noreferrer noopener">definitive measures in the EU</a>.



Late last month, South Korea’s parliament passed the <a href="https://blockworks.co/news/south-korea-insider-trading-law" target="_blank" rel="noreferrer noopener">Virtual Asset Protection Act</a> 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 <a href="https://blockworks.co/news/south-korea-crypto-transparency" target="_blank" rel="noreferrer noopener">disclose their crypto holdings</a> following a scandal in May.&nbsp;



The country is often recognized as Asia&#8217;s <a href="https://blockworks.co/news/south-korea-xrp-trade" target="_blank" rel="noreferrer noopener">epicenter for crypto activity</a>. It’s <a href="https://triple-a.io/crypto-ownership-south-korea-2022/" target="_blank" rel="noreferrer noopener">estimated</a> the Korean market drives nearly 30% of the total global crypto trading activity.



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balance sheet

Financial statements must include crypto: South Korea regulator

Ben Strack

<div id="highlights-block_6201490781b67" class="highlights">
 <ul>
 <li>KPMG in Canada is bullish on cryptoassets and could consider investments beyond BTC and ETH in the future, executive says</li>
 <li>The firm is educating institutions about the metaverse, NFTs and Decentralized Autonomous Organizations (DAOs)</li>
 </ul>
 
</div>



The Canadian arm of accounting giant KPMG International has joined a growing list of companies adding crypto to corporate treasury accounts.



The Toronto-based company, which offers ​​consulting, accounting, auditing and tax services, has added bitcoin and ether to its corporate treasury, the company said Monday.



KPMG International, a global network of firms headquartered in the Netherlands, reported roughly $32 billion in revenue for its 2021 fiscal year. The latest crypto investment was made by KPMG in Canada.



Since Michael Saylor’s MicroStrategy <a href="https://cms.blockworks.co/microstrategy-buys-1900-more-bitcoins/" target="_blank" rel="noreferrer noopener">added</a> bitcoin to its balance sheet, dozens of companies have followed suit in what industry participants view as a growth area for the space.



The assets were acquired through Gemini Trust Company’s execution and custody services. KPMG formed a governance committee to review the regulatory, reputational and custodial risks before approving the treasury allocation.



The company declined to disclose the amount of BTC and ETH purchased.



Kareem Sadek, a partner and advisory and risk consulting blockchain leader for KPMG Canada, told Blockworks the company is taking a “prudent” approach to the space and has so far only considered buying bitcoin and ether.



“This is one of the many initiatives in the cryptoasset space that we&#8217;re looking at,” Sadek said. “KPMG in Canada is bullish on cryptoassets. We believe they are here to stay, and we’ll consider other innovative investment opportunities in the future.”



Benjie Thomas, Canadian managing partner of advisory services for KPMG in Canada, said that hedge funds, family offices, insurers and pension funds are increasingly snapping up crypto.



Others, such as banks, financial advisors and brokerages, he added, are exploring the space, as well.



About 90% of institutions interested in crypto expect to allocate to the space by 2026, according to a <a href="https://cms.blockworks.co/fidelity-exec-fairly-long-tail-of-institutions-driving-mainstream-crypto-adoption/" target="_blank" rel="noreferrer noopener">recent Fidelity study</a>.



Next, KPMG Canada is looking to enable institutional participation in Web3, Sadek told Blockworks, with a focus on the metaverse, NFTs and Decentralized Autonomous Organizations (DAOs).



The firm offers crypto-related services when it comes to taxes, accounting and legal matters.



“Our DeFi workshops now include live demos of multiple applications, which inform how institutions can engage with applications and manage the associated risks,” Sadek said. “Being a multi-faceted professional services firm, we are uniquely positioned to engage with our clients in these workshops to share our insights that form the foundation of our support when helping in developing their strategy, roadmap and even proof-of-concepts.”



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