FSS Holds First Expert Meeting on Cryptocurrency Accounting Supervision Discussions

[Asia Economy Reporter Lee Jung-yoon] The Financial Supervisory Service (FSS) announced on the 27th that it will hold an expert roundtable discussion together with the Korea Accounting Standards Board and the Korean Institute of Certified Public Accountants to discuss accounting supervision issues related to virtual currencies.

The roundtable will be held regularly starting with the first meeting on the 28th to discuss accounting issues related to virtual currencies and to share opinions on the preparation of accounting and audit guidelines.

First, the current status of virtual currency accounting treatment and the need to strengthen footnote disclosures for investor protection were selected as the first discussion topics. Information related to the issuance, sale, holding status, and customer consigned virtual currencies will be presented as footnote disclosure tasks. In the second roundtable, issues will be heard from the Accounting Standards Board and the Korean Institute of Certified Public Accountants, followed by opinions from the industry, accounting firms, and academia to continue the discussion. If necessary, the FSS plans to consult with the Financial Services Commission on the preparation of final accounting or audit guidelines and promote seminars as needed.

Currently, international accounting standards only stipulate application guidelines for holding virtual currencies. Also, since the legal status of virtual currencies has not been finalized, it is estimated that it will take considerable time to establish related accounting standards. Accordingly, the FSS decided to operate the roundtable to enhance the usefulness of information on virtual currency transactions and discuss accounting supervision issues for investor protection together with related accounting organizations. The roundtable consists of a total of 10 members, including the Accounting Standards Board, the Korean Institute of Certified Public Accountants, related industries, academia, and accounting firms.

An FSS official stated, "Before the establishment of the virtual asset industry law, we plan to proactively identify issues in the field of accounting supervision and contribute to investor protection by presenting related guidelines if necessary," adding, "We will form a consensus among domestic related organizations on accounting and audit issues and jointly respond to accounting issues by expressing opinions to international standard-setting bodies."