From discussing a crypto business idea
to a lasting relationship with a shareholder.

I first spoke with Mr. Yanagisawa at an event called “Proof of Drink,” if I remember correctly, in 2018. This was when crypto assets were still commonly called “virtual currencies” in Japan. A conversation over drinks at the networking reception became the beginning of our relationship.

Our relationship has had two main chapters. The first was the Aruku Coin project, when I was involved with Real World Games Co., Ltd. The second began when I started the business that would become JPYC. He first supported us as a professional whom we could consult on business tax matters, and later became involved as a shareholder as well.

Thinking through a new business together from a tax and accounting perspective

Around 2018, Real World Games was working on Aruku Coin, a project combining walking and blockchain. We asked Mr. Yanagisawa to support the project on tax and accounting matters.

The difficulties at the time went beyond tax. Would the business we envisioned conflict with the Payment Services Act? How should we approach regulatory requirements, including any necessary registrations? There were legal questions that needed to be addressed before we could move on to calculating taxes.

Rather than an ongoing advisory engagement focused on annual accounts and tax returns, we asked him to examine the tax and accounting issues arising from the project we were developing. As we worked to turn the idea into a business, we had to consider matters such as raising funds through tokens and allocating them, granting tokens to contributors, and the tax implications of any overseas involvement.

“Business”—what we wanted to achieve; “legal”—how the project related to laws and industry regulations; and “tax”—its accounting treatment and tax implications. These three areas were interdependent. Resolving one did not settle the others. Legal requirements could change the structure of the business, which in turn could change the tax issues we needed to examine. We had to move back and forth between them.

Legal judgments require the expertise of lawyers and other specialists. But at the time, it was difficult to find a tax accountant who understood those legal considerations and could discuss the connection between the business and its tax implications. Mr. Yanagisawa worked through the tax and accounting issues with an understanding of what we were trying to achieve and the legal challenges we faced. I think it was important that we could discuss the business as a whole, without treating tax as an isolated matter.

Involvement in JPYC’s predecessor through 8D LLP

I later founded Nihon Crypto Asset Market Co., Ltd., the predecessor of today’s JPYC Inc. I also had opportunities to discuss the business with Mr. Yanagisawa during that period.

8D LLP, the angel fund in which Mr. Yanagisawa participates, became an outside shareholder at a very early stage, while the company was still called Nihon Crypto Asset Market Co., Ltd. He has followed the journey that led to today’s JPYC from its early days.

Having been someone I consulted on tax matters for the earlier project, he was now also involved as a shareholder. Although we remained in the same crypto asset and blockchain field, both the business and my own role changed, and the nature of our relationship evolved with them.

A relationship in which we can talk about business—and more

Our office at the time was in the Nekoraibo Building in Shiba Park. Mr. Yanagisawa would visit us there, and we sometimes had drinks together. I have also visited his office for drinks many times. We first met at a networking reception, and we have continued visiting each other’s offices and talking over drinks about more than just work.

When you are working on a new business, you sometimes have to explain an idea that is not yet widely understood. It is reassuring to have someone with whom you can discuss the business itself, as well as its tax issues.

From the days of Aruku Coin to JPYC today, the business has developed and his involvement has changed. Through it all, I have been able to talk with Mr. Yanagisawa, who knows the history. That is the kind of lasting relationship we have maintained.