ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Thursday Oct 18th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Japan Accepts Bitcoin, But Are Companies Ready?

By

Dan

Cummings

WriterETHNews.com

New law in Japan will allow payments using virtual currencies, but accounting standards lag.

According to Japan’s Financial Services Agency, on April 1, 2017, the country will begin recognizing bitcoin and other forms of virtual currency as a form of payment pursuant to a recently passed law. The law also places more stringent requirements on exchanges such as cybersecurity and annual audits. The decision comes after months of debate and increased pressure on how bitcoin exchanges are to be regulated.

In 2013, the now-defunct Tokyo-based Mt. Gox bitcoin exchange collapsed in a $460 million dollar catastrophe that sent a shockwave of panic in Japan and around the world. As a result, in May 2016, Japanese lawmakers passed a bill that specified that all “virtual currency” exchanges must be regulated by the Financial Services Agency. The law that was just recently passed is the latest effort made by the Japanese government to improve public trust of virtual currencies.

However, current Japanese accounting rules lack accurate guidance on how to specifically handle digital currency payments. This leaves many companies in the dark, as holders of virtual currencies can claim them as assets, while issuers can claim them as liabilities.

"There is a risk that companies that hold virtual currency could turn out to have distorted valuations or that huge losses surface suddenly," said Chikako Suzuki, partner at PricewaterhouseCoopers Aarata.

According to Nikkei, the Accounting Standards Board of Japan has begun to develop a framework for the management of virtual currencies, but the organization is expected to take at least six months to create a practicable accounting method.

ETHNews will update this story as more information develops.

Dan Cummings

Dan is a Los Angeles-based musician, writer, and veteran passionate about science and technology, current events, human rights, economic impacts, and strategic calculus.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest , or other Ethereum law and legislation news.