Japan, US Allow Using Bitcoin Widely
For Japanese Businesses it’s easier to use virtual currencies like bitcoin, and the U.S. establish accounting ground rules and prepare a futures market to help guard against the digital coins’ volatility.
In a committee meeting on Wednesday the Accounting Standards Board of Japan settled a board framework for handling assets in virtual currencies. It is out of plan that cryptocurrency holdings will be counted according to the market valuation, and investors will book their profits or losses when values change.
After nailing down details, the board will release a draft of the plan. Earnings application will start in fiscal 2018.
Payment in bitcoins is now available at more than 10,000 stores throughout Japan, including electronics markets and travel agencies. Previous reluctant businesses probably can get on board easily with using clear-cut accounting rules.
Many say cryptocurrencies’ roller-coaster prices make them ill-suited for transaction settlements and fund management.
That’s why the world’s biggest futures market- Chicago Mercantile Exchange plans to begin trading bitcoin as soon as this year. The Chicago Board Options Exchange is also preparing to list the futures.
Businesses can use these futures to guard their market value against price drops, after booking their cryptocurrency assets.
It will become easier for institutional investors to get involved with virtual currencies after listing the futures. U.S. fund manager of Horizon Kinetics Utako Kojima said:
“Greater transparency around prices will make it easier to take part”.
Bitcoin and its kin were recognized as payment methods in April by Japan, which created a registration system for exchanges supporting cryptocurrency trading. Also the Financial Services Agency implemented fund settlement laws.
The honored chairman of the CME Group, Leo Melamed, has mentioned Japan being at global forefront in handling of digital coins.