What is a cryptocurrency asset (virtual currency)?

 Cryptocurrencies can be used as consideration for goods, etc. among an unspecified number of people via the Internet, and there are various types such as Bitcoin, and the transaction volume is on the rise.

System development related to crypto assets (virtual currency)

With the spread of crypto resources (virtual currency), the improvement of general sets of laws connected with crypto resources (virtual currency) is additionally being advanced.

For example, there are businesses that exchange crypto assets (virtual currency) for legal tender, etc., but the revised Funds Settlement Law stipulates that they must be registered by the Financial Services Agency / Finance Bureau in order to carry out their business.

In addition, from July 2017, the Consumption Tax Law stipulates that consumption tax will not be levied on the purchase and sale of crypto assets (virtual currency).

What is different from e-commerce?

Cryptocurrencies (virtual currencies) are electronic things that do not have money or coins, so they are often confused with electronic money, but they have different properties.

Electronic money is an electronic payment method. Basically, it can be used by paying legal tender such as yen and dollar as consideration, and there is always an issuing entity, and the issuing entity supports the value. In principle, e-commerce cannot be converted into cash and cannot be used for transactions with unspecified persons.

On the other hand, cryptographic assets (virtual currency) do not necessarily have an issuer or administrator, their value increases or decreases, they can be exchanged with legal tender, and they can be used for transactions with unspecified persons on the Internet. It is mentioned as a feature. Cryptocurrencies (virtual currencies) are often held for investment purposes in the hope that the price of crypto assets (virtual currencies) will rise, but crypto assets (virtual currencies) are legally defined as different from electronic money. Therefore, there is a risk that the price will drop sharply, so it is important to fully understand the characteristics before using it.

Blockchain, a technology that supports crypto assets (virtual currency)

Generally, crypto assets (virtual currency) are recorded and managed by a technology called blockchain. Since blockchain is a mechanism that makes it extremely difficult to destroy or tamper with data, there is almost no possibility that cryptographic assets (virtual currency) will disappear due to system failure or hacking. However, the holder of the crypto asset (virtual currency) needs to securely manage the key indicating the possession of the crypto asset (virtual currency), and when the key is lost or hacked, the crypto asset (virtual currency) Will be lost.