Japan want implement tax reforms to boost the growth of Web3 startups, positioning the country as a global leader in blockchain technology and digital innovation.
Web3 hub
Japan’s Minister of Economy, Takeru Saito announced plans for new tax policies designed to support the Web3 ecosystem, as part of a broader strategy to establish Japan as a frontrunner in the Web3 and blockchain sectors.
During the WebX Conference, Saito mentioned the vast potential of Japanese Web3 and blockchain industry, telling that favorable tax policies are also essential to attract entrepreneurs and developers from around the world.
And what is more important, his vision received strong support from Prime Minister Fumio Kishida.
Public servants
Prime Minister Kishida stressed that Web3 and blockchain technologies could play a central role in solving some of Japan’s most pressing social issues, so the government plans to introduce tax and legal reforms that will ease the process for Web3 startups to secure funding and create jobs.
The push for Web3 development gained momentum in September last year, when Japan permitted startups to accept investments in cryptocurrency, marking a big shift in its crypto regulation approach.
But Japan’s crypto industry still faces significant regulatory challenges, and for some, this is way too much. In July, the crypto exchange Gate.io exited Japan due to the country’s stringent financial regulations.
Consumer protection
Japan’s strict regulatory stance is partly a response to past security breaches, such as the May hack of the DMM Bitcoin exchange, where $305 million worth of Bitcoin was stolen.
Incidents like these have reinforced the need for robust regulations to protect users. But as some critics mentioned, regulations barely defend agains cybercrimes, they’re often nothing more than state intervention to markets.
Despite all the hurdles, interest in digital assets is undoubtedly rising in Japan.
A survey conducted in June by Nomura Holdings and Laser Digital Holdings revealed that 54% of 547 investment managers, including those from family offices and public organizations, are considering entering the digital assets market within the next three years.
