31 Japanese listed companies hold cryptocurrency to avoid asset shrinkage caused by the depreciation of the yen

PANews reported on June 21 that, according to Nikkei News, the number of listed companies in Japan holding cryptocurrencies is steadily increasing. According to the latest statistics, as of May 2024, there are already 31 companies involved in the cryptocurrency field, a number that has doubled from 16 three years ago. Among them, businesses mainly engaged in digital services and game development are particularly noteworthy. At the same time, calls for improving Japan's immature accounting audit system are growing louder.

It is reported that this data was compiled by pafin company located in Chiyoda Tokyo based on financial statements recently released by about 4,000 companies listed on the Tokyo Stock Exchange. One of these companies' purposes for holding cryptocurrencies is their value as an investment; another reason is to avoid asset shrinkage caused by yen depreciation. On the other hand, some companies have adjusted their strategies after purchasing virtual currencies with hopes of creating synergies with their business operations.

However, Japanese commercial firms still face two major obstacles when it comes to holding virtual currencies: security issues and accounting audits problems. Virtual currencies processed on blockchain are difficult to manage - for example DMM Bitcoin was attacked in May - so commercial firms handling large amounts of money need strong custodial services. Another obstacle lies within accounting auditing issues: over past few years tax treatment has gradually become clear for those who own or invest in issued cryptocurrencies but if a company tries issuing new virtual currency often times Japanese auditing firms will refuse conducting audits suggesting they sell before listing any new cryptocurrency.
Despite joint forums held between The Japanese Certified Public Accountants Association and The Japan Cryptocurrency Business Association (JCBA) aimed at enhancing mutual understanding there remain significant disagreements between both parties regarding certain issues.