The number of Japanese companies investing in cryptocurrency is steadily increasing, with 31 companies now involved in the sector, up from 16 just three years ago. Companies in the digital services and game development sectors are leading the way, drawn in by the potential of cryptocurrency as an investment and a way to protect their assets from the depreciating yen.

According to data compiled by Pafin, a Tokyo-based company, the 31 companies are listed on the Tokyo Stock Exchange and have invested in cryptocurrency as part of their business strategy. While some companies have adjusted their approach after investing in cryptocurrency, others are still facing challenges in managing their virtual currencies and finding robust custodial services to secure their investments.

Security is a major concern for companies dealing with large amounts of money, as the blockchain technology behind cryptocurrency can be difficult to manage. The recent attack on DMM Bitcoin in May highlights the need for secure custodial services, and companies are struggling to find reliable partners. Accounting and auditing issues are also a challenge, with Japanese auditing firms often refusing to audit companies that issue their own virtual currencies.

Despite these challenges, the Japan Cryptocurrency Business Association (JCBA) and the Japanese Certified Public Accountants Association are working together to improve mutual understanding and find solutions to these issues. The 'Business Operator and Auditor Accounting and Auditing Joint Forum' is one such initiative, aimed at enhancing communication and resolving disagreements between companies and auditors.

As the number of Japanese companies investing in cryptocurrency continues to grow, it is clear that cryptocurrency is becoming an increasingly important part of the business landscape in Japan. While there are still challenges to be overcome, the potential benefits of cryptocurrency are driving companies to invest and innovate in this rapidly evolving sector.