Japan recently approved a Web3 white paper that could put the East Asian nation at the forefront of global cryptocurrency growth.
Japan has approved a Web3 white paper to fuel the growth of the country’s fledgling crypto industry. On Thursday, the Web3 project team of the East Asian nation’s ruling Liberal Democratic Party published the cryptography guidance document. The white paper proposes several recommendations to grow and improve Japan’s digital currency space. These include instituting more tax reforms, better accounting standards, and a Decentralized Autonomous Organization (DAO) law. In addition, the full crypto document also proposes that Japan take the crypto initiative at the Group of Seven (G7) summit this year.
The development of the Japan Web3 white paper feeds into Prime Minister Fumio Kishida’s overall national strategy to fuel the growth of cryptocurrencies. Japan is making concerted efforts to create a crypto-friendly environment amid regulatory initiatives by other governments to protect end users. The Kishida administration’s crypto strategy also seeks to prevent companies from moving to other jurisdictions due to heavy tax burdens. Japan’s long documented history of imposing heavy taxes on crypto businesses is cause for concern.
Japan Bypasses Government Red Tape to Speed Up White Paper Development for Web3 and Blockchain
The Japanese government’s Web3 project team has circumvented the usual bureaucratic processes to devise and speed up airtight regulation of cryptocurrencies. The regulatory proposals apply to all facets of the blockchain and range from non-fungible tokens (NFTs) to DAOs. in a media sessionThe Secretary General of the Liberal Democratic Party’s Web3 project team, Akihisa Shinozaki, noted:
“The cryptocurrency industry has been driven by early adopters, but from now on it will shift to mass adoption.”
On the practicality of further mainstream adoption of digital currencies and the underlying blockchain, Shiozaki also noted:
“Everyone owns wallets and digital assets of course, and Bitcoin, NFTs and security tokens are not special, they just become ‘common’. Such a world is beginning to materialize before our eyes.
Furthermore, the Secretary General also added that major players from other Japanese industries have ventured into the crypto space. These include the telecom operator NTT Docomo and numerous prominent traditional financial institutions. NTT Docomo previously committed to invest up to 600 billion yen, or $4 billion, in the Web3 infrastructure, while financial institutions plan to issue stablecoins.
In Shinozaki’s opinion, the best time to start a crypto white paper and improve crypto promotion is now. The reason is that the “crypto landscape is changing at a breakneck pace”. Thus, Shinozaki concluded, “So it’s hard to tell how long this tailwind will last.”
Other white paper recommendations
The white paper suggests that Japan embraces the future global potential of Web3. Furthermore, the crypto governance and implementation document also recommends that the nation clarify its leadership stance on technology-neutral innovation.
The Japanese crypto white paper advocates for further modifications to tax regulation, including imposing crypto taxes only when exchanged for fiat currency. The document also identified the urgent need to improve accounting standards, as several Web3 companies have difficulties finding auditors. According to the white paper, government ministries and parastatals should support the Japan Institute of Certified Public Accountants in formulating guidelines.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
