Government moves to set crypto-asset investment disclosure threshold at '3% of equity capital'

Financial regulators are said to have set the disclosure threshold for listed companies’ crypto-asset investments at “3% of equity capital.”

According to the industry on the 22nd, the Financial Services Commission recently presented a 3% of equity capital threshold for corporate crypto-asset investment disclosures at a meeting of a related-agency task force (TF) on “Guidelines for Corporate Crypto-Asset Investment.” Under the FSC’s plan, if a company invests 3% or more of its equity capital in crypto assets, it must convene an internal investment review committee and disclose the matter.

The 3% of equity capital threshold is the standard under which securities firms are required to set up an investment review committee when conducting principal investment (PI). The FSC appears to have applied that benchmark to the corporate crypto-asset investment guidelines.

The FSC is also reviewing a plan to cap corporate crypto-asset investments at 5% of equity capital. However, in major countries such as the United States and Japan, there are reportedly no separate restrictions related to corporate crypto-asset investment.