Japan’s crypto-asset business association published a report yesterday that highlights issues in crypto investing for the country’s institutional investors.
- This report is an update of the latest use cases and projects from the “Discussion Paper Interim Report on Cryptocurrency Use Cases” published on May 7, 2021, and is a supplementary material to the request for tax reform in 2022, to be submitted to the Financial Services Agency Japan.
- Drawing from case studies outside of Japan, the association highlights ways that cryptocurrencies can be useful for Japanese business in investment and settlement.
- The report also highlighted a lack of custodian solutions, which are important for institutional investors to ensure the safety of their assets; a lack of a reliable crypto price index in yen; a lack of easy means for institutions to invest in crypto, and a lack of clarity in crypto regulations.
- Earlier this year, the nation’s virtual currency deposits hit a record high in March, soaring to 1.41 trillion yen, or about US$13 billion. The amount is nearly seven times that of last year’s crypto deposits for the same month, Japan’s Virtual and Crypto assets Exchange Association disclosed.