Juzu Bead

The Juzu Bead Bracelet is a bracelet that people from the Sohma Family who is cursed by the Cat spirit must wear at all times, as they turn in the Cat's "true form" otherwise. It is currently in possession by Kyo Sohma and his family.

Appearance
The bracelet is a set of Juzu Beads, or Buddhist prayer beads. They are round and quite small in size. The colors are red and white all the way around, every other turn. In the 2001 anime, they are black and white, though this was mentioned to be incorrect by Natsuki Takaya.

Origins
Because the Cat appeared to “betray” God and the other animals in the original Zodiac Legend (see: The Chinese Zodiac), the Cat was the only who was truly cursed, as it was not allowed to be part of the Zodiac. Apart from that, the people possessed by the Cat spirit also had an additional form; a grotesque, foul-smelling, monster. To counteract this form and instead opting to transform into a normal Cat, the Juzu Bead bracelet was made. According to Kyo, it was made of the bones of a priest and dyed in their blood.

Fruits Basket
Kazuma's Grandfather is the first person in the series to be seen wearing the Juzu Bead bracelet. He was imprisoned in the Cat's Room and wore his bracelet at all times.

After he died, Kyo Sohma became the next person cursed by the Cat spirit. His mother would always check that his bracelet was intact everyday, because she didn't want him to transform into his "true form".

When Kyo was young, Kagura Sohma forced Kyo to take off his bracelet, not knowing what taking it off entailed; and in result, she was horrified and ran away. When Akito Sohma saw Kyo's true form for the first time, she thought it was disgusting.

When Kyo was around 17 years old, his adoptive father Kazuma Sohma took off Kyo's bracelet by force, because he didn't want his son to turn a blind eye to those willing to accept him. For the first time in his life, a person; Tohru Honda, accepted Kyo, even after seeing him in his true form. Kyo later got his bracelet back.

A couple weeks later, when they were on a vacation with the Sohmas, Kyo explained the bracelet's origins and history to Tohru, much to her worry.

When Kyo's curse broke, he ripped his bracelet off because he was finally free from his curse and didn't transform into a monster anymore. Although Kyo didn't know how to feel about the broken bracelet, Tohru picked them up for him, because, as Kyo narrates;

Kyo's Juzu Bead bracelet has since been kept in a bowl in Tohru's room (along with family pictures, Tohru's hat, and Chinese Zodiac figurines), presumably as a reminder of his past.

Fruits Basket Another
It is seen that Kyo’s son, Hajime Sohma, wears the Juzu Bead bracelet at all times, albeit not in the same order. Since the curse is broken and since neither Kyo nor Hajime is possessed by the Cat spirit, it is strongly implied that Hajime wears his father’s bracelet because he wants to show his respects to him and honor his past as the Cat.