Published on April 4th, 2017 | by San Dee Doxtdator0
Japan in process of setting framework to make use of Bitcoin and other crypto-currencies legal
In late March Japan’s Accounting Standards Board began investigating and formulating the regulatory framework on how to integrate Bitcoin and other crypto-currencies into their monetary system.
Building upon legislation that legalized the use of crypto-currencies as far back as 2016, Japan is the largest economy to date to fully accept de-centralized digital currency, albeit with a demand for stringent regulatory oversight to ensure proper taxation, money laundering avoidance, and to protect against the potential of another Mt. Gox incident within Bitcoin exchanges.
New legislation authorizing digital currency as a legal payment method has come into force in Japan.
The text of the law was released by Japan’s Financial Services Agency on March, 24.
Earlier this week, the Accounting Standards Board of Japan said that it would begin work on the creation of a framework to help understand how digital currency would be dealt with in the accounting sector. The process is expected to take six months, according to Nikkei.
Big business is especially concerned; since the country has failed to provide guidelines regarding the accounting process when dealing with cryptocurrencies.
“There is a risk that companies that hold virtual currency could turn out to have distorted valuations or that huge losses surface suddenly,” Chikako Suzuki, partner at PricewaterhouseCoopers Aarata, told Nikkei Asian Review.
Around $1.7 billion of cryptocurrency, including bitcoin, Ripple, Litecoin and others, was in circulation across Japan two years ago. The 2020 projection is set to be at $9 billion, according to a Fuji Chimera Research Institute study.
The set of measures, that now has come into force, was drafted as far back as 2015 and passed in 2016 after a year of negotiations. Uncertainty over the legal status of virtual currency was stirred after a multi-million dollar embezzlement scandal and the collapse of the Tokyo-based Mt.Gox Bitcoin exchange. – Russia Today