PANews reported on June 21 that according to Nikkei News, the number of Japanese listed companies holding crypto assets is continuing to rise. According to the latest statistics, as of May 2024, 31 companies have been involved in the field of crypto assets, a number that has doubled compared to 16 three years ago. Among them, companies with digital services and game development as their main businesses are particularly eye-catching. At the same time, calls for improving Japan's immature accounting and auditing system are growing louder.
The data is reportedly compiled by Pafin, a company based in Chiyoda, Tokyo, based on the recently released financial statements of about 4,000 companies listed on the Tokyo Stock Exchange. One of the reasons these companies hold crypto assets is to value their value as an investment, and the second is to avoid asset shrinkage caused by the depreciation of the yen. On the other hand, some companies adjusted their strategies after purchasing virtual currencies, expecting synergies with their businesses.
However, Japanese commercial companies still face two major obstacles in holding virtual currencies. The first is security. Virtual currencies processed on the blockchain are difficult to manage, such as the attack on DMM Bitcoin in May, and commercial companies that handle large amounts of funds need to seek strong custody services. Another obstacle is accounting and auditing issues. In the past few years, the tax treatment of companies that own or invest in cryptocurrencies issued by them has gradually become clear. But if a company tries to issue a new virtual currency, Japanese auditing firms often refuse to conduct an audit and recommend that it sell the virtual currency before it goes public. Although the Japan Institute of Certified Public Accountants and the virtual currency industry organization Japan Cryptocurrency Business Association (JCBA) jointly held the "Joint Forum on Accounting and Auditing for Operators and Auditors" to enhance mutual understanding, there are still major differences between the two sides on some issues.
