The Hong Kong Association of Chartered Accountants is finalizing its accounting guidelines for cryptocurrencies, with Part 2, which addresses the HKMA's stablecoin auditing requirements, expected to be released within six months.
The new chairman of the Association, Mr. Law Cheuk- Kin, said the goal is to help the accounting and business community understand how to handle virtual assets in accounting. The guidance is Chia into sections, released in stages according to the progress of work with regulators and the industry.
- Part 1 on cryptocurrencies and stablecoins has been released.
- Part 2 of the HKMA's stablecoin audit is expected in six months.
- Part 3 could be released early at the end of the year, depending on agreement with regulatory bodies and the relevant industry.
Progress of Part 3: Accounting Guide for Virtual Assets
The Hong Kong Association of Chartered Accountants is developing guidance to standardize the recognition and handling of virtual assets in accounting reports, to be published in three parts.
According to Law Cheuk- Kin, Part 1 of the guidance has been issued and focuses on cryptocurrencies and stablecoins. The pre-release of this part aims to provide an initial reference framework for businesses and accountants when dealing with transactions involving virtual assets.
Part 3 is targeted for release as early as the end of the year. However, the Association emphasizes that it will only be released after consultation and consensus with regulatory bodies and industry stakeholders, demonstrating that the standard-making process is heavily reliant on real-world feedback and oversight requirements.
Part 2 on stablecoins: HKMA audit requirements
Part 2 of the guidance has not yet been published and revolves around the Hong Kong Monetary Authority's (HKMA) requirements for auditing stablecoins.
The association is currently in discussions with the HKMA regarding the audit content related to stablecoins and expects to issue Part 2 within six months. This timeline reflects the progress of work between the professional organization and the regulatory authority before issuing widely applicable guidance.
