Japanese officials will be held in early April officially recognized as legal bitcoin payment
Japan’s cabinet has signed the law, that is legal and other virtual currency bitcoin payment, and will take effect April 1st. Bitcoin companies and users are still very want to know the relevant accounting standards of encryption currency.
In 2016 February, the national financial regulators in Japan financial services agency (FinancialServicesAgency, FSA) in the study of the relevant proposal, consider amending the legislation of equal status in recognition of other digital currency bitcoin and traditional currency. The modification if approved, will be regarded as “performance bitcoin monetary function” of the money.
In March, the Japanese cabinet passed a series of bills, have recognized the value of bitcoin and other virtual currencies, and can be used to pay for digital transmission. Fundamentally speaking, and digital currency bitcoin will be officially recognized as legal tender, perform the same functions.
Add a digital currency for payment, make such amendments to the “payment service law”, a bill through the legislature in 2016 and Japan in May, at that time, the bill authorizes FSA to digital currency on Japan’s regulation. CCN previously reported, in early 2015, Japan had proposed an early draft regulation.
“According to the definition proposed by FSA, the virtual currency must be as a medium of exchange, which means they can be used to purchase goods and services. They also can be converted into currency trading partner is not specified.”
At the same time, the relevant financial institution need to be registered in the FSA, that the policy supervision department, which may help to prevent similar Japan bitcoin exchange MtGox crash incident, MtGox lost customers nearly a hundred million dollars in 2014.
Bitcoin virtual currency and will be on Sunday officially certified for payment. However, accounting for the frame of the digital currency still need 6 months to build up, which makes the adoption of bitcoin and related companies are in a dilemma.
In fact, because of the rapid development of digital currency, to provide for the preparation of specific accounting standards is necessary, the only way to ensure that the financial statements can provide relevant and useful information to the user. However, at present there is no accounting standards to deal with virtual assets and other commodity asset class investment, because these are not financial instruments or inventory.
However, since bitcoin in a certain degree of social economic activity began to impact, we should face up to the situation in the field of accounting research, bitcoin from the angle of accounting on accounting attribute of bitcoin, and how to confirm and measure, so as to correctly reflect the impact on social and economic activities.
According to the Nikkei News reported that the Japanese Accounting Standards Committee (AccountingStandardsBoardofJapan, ASBJ) has decided to consider the accounting framework for the development of digital currency. The report also added, is expected to use 6 months to build a feasible accounting scheme.
According to Japan’s current accounting guidelines, virtual currency holders can be used as stock aside, the issuer can be regarded as a debt. However, this is the company or individual in the most appropriate expression of their balance sheets that can be used for digital currency. Because Japan has not yet introduced for bitcoin, Wright coins and other popular Ethernet coins, currency especially know, many accepted completely included in the digital currency not in their accounts.
The report stressed the accounting model suitable for example project reward, usually by the airline’s favor. According to international financial reporting standards (InternationalFinancialReportingStandards), only in exchange for bonus points and all their value is registered as a debt, bonus accounting will be regarded as recognized. And this may adversely affect the company’s operating profit, especially those customers generous incentives. The report also pointed out that because of the high reward points project promotion is too radical, net profit of Tokyo electricity giant Lotte declined in fiscal year 2016.
PWC set up a company called PWCAarata in Japan, the company’s partner ChikakoSuzuki told the media, “hold companies virtual currency may eventually prove to be its valuation is distorted, or suddenly suffered huge losses.”
According to the current situation in Japan, and other digital currency bitcoin recipient and the company still has not been a corresponding know, you know, the Japanese market is one of the world’s largest bitcoin trading market today.