Japan Cryptoasset Business Association Releases "Best Practices for Cryptoasset Staking Business"

The Japan Cryptoasset Business Association (JCBA, Chairman: Noriyuki Hirosue) has formulated and published the "Best Practices for Cryptoasset Staking Business" as part of the activities of its Staking Working Group (Chairman: Eisuke Watanabe). These best practices are intended to serve as a reference for the operations of staking businesses and related industries.

These best practices organize perspectives that contribute to operating with an emphasis on safety, transparency, and user protection in the expanding domestic and international staking market. They compile matters that can serve as a reference when businesses consider providing more appropriate services, taking into account their own business characteristics and risk profiles.

■ Background and Purpose

In recent years, with the spread of crypto assets adopting Proof-of-Stake (PoS) and related models, the provision of staking-related services has been expanding domestically. On the other hand, there are situations where practical responses differ among companies regarding risk management, content of information disclosure, and methods of explaining to users.

In light of these circumstances, the JCBA Staking Working Group has compiled these best practices with the aim of organizing matters that can be practically referenced from the perspectives of legal regulations, business risks, operations, and user protection, thereby contributing to the healthy development of the industry.

These best practices are not regulatory or binding; they are positioned as reference guidelines for businesses to make practical judgments and as a benchmark for business improvement.

■ Overview of Best Practices

These best practices primarily organize the following matters:

1. Introduction: Scope and Purpose of these Best Practices
2. Definition of Terms
3. Types of Staking Services
4. Main Risks Associated with Staking
5. Operational Requirements and Emergency Response
6. Information Disclosure and Accountability
7. Compliance
8. External Audit
9. Tax and Accounting

▼ Download materials and details here (JCBA official website)

1. Best Practices for Cryptoasset Staking Business
Download materials here
* The full text can be viewed free of charge as PDF data.

■ Future Outlook

Taking the publication of these best practices as an opportunity, the JCBA Staking Working Group will further promote exchanges of opinions among businesses and the organization of practical issues. Furthermore, we will continue our activities to update these practices as necessary in line with market conditions and technological advancements, aiming to contribute to safe and sustainable service provision not only for member companies but also for domestic and international businesses interested in staking services.

■ About JCBA Staking Working Group

The working group aims to deepen the understanding of basic staking concepts, share staking models for major crypto assets adopting PoS and DPoS, and classify staking methods from the perspectives of legal regulations, tax accounting, and business risks, thereby organizing key issues.

■ Working Group Operating Members

Chairman: Eisuke Watanabe (Representative Director, Omakase Inc.)
Vice Chairman: Soichiro Tokuriki (Representative Director & CEO, Next Finance Tech Inc.)
Secretary: Akihiro Ono (Optage Inc.)
Secretary: Jo Tadoroko (Coincheck Inc.)
Secretary: Sho Kamiguchi (Senior Manager, Financial Services Department, Deloitte Touche Tohmatsu LLC)
Secretary: Kenji Kitagami (Fintertech Inc.)
Legal Advisor: Hajime Saito (Representative Lawyer, So & Sato Law Office)

■ Association Overview

Company Name: Japan Cryptoasset Business Association (JCBA)
Location: Ark Mori Building 12F, 1-12-32 Akasaka, Minato-ku, Tokyo
Representative: Chairman Noriyuki Hirosue
URL: https://cryptocurrency-association.org
Established: March 2016

This year, JCBA celebrates its 10th anniversary.

Event Report & Special Interview Page here
https://cryptocurrency-association.org/news/event-info/202600304-001/

Business Activities: Through knowledge sharing among members, consensus building, issue identification, and policy recommendations concerning crypto assets, digital assets on the blockchain, and Web3-related businesses, JCBA strives to develop and promote the business environment and conduct awareness-raising activities.

* Subcommittees, etc.: Currently, 13 working groups, including tax review, ICO/IEO, use cases, finance, NFT, stablecoins, DeFi, security/systems, blockchain games/entertainment, as well as a Web3 business rule review task force and accounting working group, are active.
* Monthly study sessions: Legal regulations, tax accounting,