Japan Embraces Web3, Publishes Whitepaper On Crypto Adoption

In a progressive move towards crypto adoption, Japan's ruling Liberal Democratic Party's Web3 project team has published a whitepaper detailing recommendations to expand the nation's industry.

Under Prime Minister Fumio Kishida's administration, the whitepaper aims to create a more welcoming environment for cryptocurrency businesses, while other governments focus on implementing regulations to protect consumers.

Akihisa Shiozaki, Secretary-General of the party's Web3 project team, emphasized that the crypto industry will shift to mass adoption. He also highlighted the entry of major Japanese players into the market, such as NTT Docomo's commitment towards investing some 600 billion yen ($4 billion) in Web3 infrastructure, while also citing how Japanese financial institutions have been exploring stablecoin issuance.

“The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on,” Shiozaki shares.

The whitepaper suggests that Japan should showcase leadership at the G7 summit this year, where crypto discussions are expected. It urges the nation to clarify its position on technology-neutral and responsible innovation, while also considering the future potential of Web3.

Among the recommendations, the whitepaper proposes further tax reforms, including tax exclusions for companies holding tokens issued by other companies not intended for short-term trading. It also advocates self-assessments for investors to carry over losses for three years and taxing crypto only when exchanged for fiat currency.

The whitepaper identifies the lack of accounting standards as a pressing issue, as Web3 companies struggle to find auditors. To address this, it suggests that ministries and agencies support the Japanese Institute of Certified Public Accountants in developing guidelines. The whitepaper also recommends establishing a DAO law based on Japan's gōdō kaisha (an operative term for LLC in Japan) and altering regulations under the Companies Act and the Financial Instruments and Exchange Act.

On NFTs, the document suggests public-private partnerships to create guidelines for legal business models for fantasy sports services. It also recommends public and private sector collaboration to resolve data and NFT rights issues and explore methods for content holders to legally license NFTs.

The whitepaper has initiated a call for to create the position for Web3 minister who will oversee policy promotion and international cooperation, as well as the issuance of crypto visas to skilled workers and the expansion of the startup visa system.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.