April 19, 2024
Policy & Regulation

Japan Embraces Web3: Prime Minister Kishida Champions ‘New Form of Capitalism’

Japan, known for its technological prowess, has taken a significant step towards embracing the potential of Web3 technology. Prime Minister Fumio Kishida announced during the WebX Asia conference held in Tokyo on July 25 that the nation is wholeheartedly supporting Web3 as part of its economic policy, marking a transformative move in its approach to digital innovation.

Prime Minister Kishida’s Keynote at WebX 

Addressing the audience at the WebX conference, Prime Minister Kishida expressed his conviction that Web3 is more than just a technological trend, as he stated, “Web3 is part of the New Form of Capitalism.” The Japanese government’s focus on Web3 stems from its commitment to fostering growth, driving innovation, promoting wealth distribution, accelerating digital transformation, and empowering startups. This holistic approach to Web3 highlights its potential to reshape the economic landscape of Japan positively.

Metaverse Project and Support for Cryptocurrencies

As part of this forward-thinking approach, a major Japanese company is gearing up to unveil an ambitious project in the metaverse. The initiative aims to create virtual spaces that enable seamless interactions and facilitate business activities. By entering the metaverse space, Japan aims to further promote the growth of cryptocurrencies, evident in the passing of the Stablecoins Bill and ongoing efforts related to NFTs and DAOs.

Removal of Discouraging Tax Requirements 

Recognizing the importance of creating a crypto-friendly jurisdiction and fostering an environment conducive to tech innovation, the Japanese government has taken significant steps to support Web3 projects. One such measure involves the removal of discouraging tax requirements for project founders. These changes in accounting regulations and tax rules are expected to bolster Japan’s appeal as a hub for Web3-driven initiatives.

History of Japan’s Web3 Policy 

Japan’s interest in Web3 technology can be traced back to January 2022 when the “web3 project team (formerly: NFT policy review project team)” was established under the Liberal Democratic Party’s Digital Society Promotion Headquarters. Viewing Web3 as a new frontier for the digital economy, the team proposed the development of an economic zone encompassing NFTs as a national strategy. Subsequently, the “Digital Japan 2022” initiative was launched, focusing on digital measures, including tax issues, to support Web3 development.

In June 2022, the Japanese government made a cabinet decision to integrate Web3 development into its growth strategy. Since then, relevant ministries and agencies, such as the Financial Services Agency and the Ministry of Economy, Trade and Industry, have been actively working to create a conducive environment for Web3 businesses. Additionally, revisions to corporate tax on virtual currencies during the fiscal 2011 tax reform have further encouraged domestic startups to explore the potential of Web3 technologies.

Prime Minister Kishida’s visionary speeches in May 2022 at City, the UK financial district, and the subsequent “Five-Year Startup Development Plan” underscore the government’s commitment to creating an ecosystem that fosters Web3 technologies, blockchain, NFTs, and the metaverse.

As Japan embraces Web3 technology and explores the possibilities of a central bank digital currency (CBDC), it paves the way for social and economic progress in the digital era. With its longstanding reputation for technological innovation, Japan is poised to become a trailblazer in the world of Web3, shaping the future of capitalism and digital transformation on a global scale.

Image: Wikimedia

Related posts

UK Passes Landmark Legislation to Recognize Crypto as Traditional Asset

Henry Clarke

Public Consultation Launched in the UK to Evaluate Proposed Ban on Cold Calls Based on Crypto

Eva Moore

SEC Inspector General’s Report: Crypto Challenges in the Spotlight

Content Team

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More