Virtual Asset Advisory Case | Advisory on Securing the Safety of Disclosure Procedures

The client in this case was a company that operates virtual assets and was preparing a disclosure related to a new project.

However, because some of the information differed from the internal accounting records, the client was concerned about the possibility of investor confusion and legal problems.

In particular, because of the differences between the materials submitted to the exchange and the actual token operation plan, there was a risk that investors might misunderstand.

Accordingly, the client requested virtual asset advisory assistance from a corporate specialist attorney in order to examine in advance the potential legal risks that could arise at the disclosure stage and to establish safe disclosure procedures.

The corporate specialist attorney reviewed the disclosure wording closely to align it with the exchange's rules and the relevant laws and regulations.

During the review, the attorney identified expressions that could cause investor confusion and phrases that could become legal issues, and presented specific revisions.

Through this work, the attorney prevented in advance the possibility of disputes that could arise at the disclosure stage.

The attorney analyzed the disclosure approval process as a whole and redesigned the internal review procedures.

The attorney strengthened the collaboration system between the legal team and the business division to prevent procedural omissions and to ensure that legality reviews were carried out systematically at each stage.

The attorney also provided assistance in introducing an internal checklist and establishing a system that allows for continuous management, so that the same issue would not recur in future disclosures.

The corporate specialist attorney reviewed and designed the disclosure wording and investor guidance materials to help convey the contents clearly.

The attorney established an investor question-and-answer procedure and a post-disclosure monitoring system to manage in advance the possibility of misunderstandings and disputes.

Through this, the communication risks that could arise at the disclosure stage were efficiently reduced.

The supervisory guidelines on the accounting treatment of virtual assets provide detailed guidance, based on the Act on the Protection of Virtual Asset Users and the Financial Investment Services and Capital Markets Act, on the transaction stages and accounting treatment standards applicable to issuers, holders, and business operators.

▷ Virtual Asset Issuers

▷ Virtual Asset Holders

▷ Virtual Asset Business Operators

Footnote disclosure has been made mandatory so that users of accounting information can sufficiently verify a company's information on virtual asset transactions and holdings.

Companies may take the following measures in order to respond to the strengthening of the rules on the accounting and disclosure of virtual assets.

1. Strengthening the Internal Review System

2. Establishing an Investor Communication System

3. Continuous Management of Accounting Policies and Disclosure Content

Through these measures, companies can proactively manage the legal and accounting risks that may arise in the course of virtual asset accounting and disclosure, and can strengthen investor trust.

In addition, the strengthening of footnote disclosure improves comparability among companies and the reliability of information, and minimizes uncertainty related to the interpretation of accounting standards.