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Japan recently approved a Web3 white paper that could place the East Asian nation at the forefront of global crypto growth.
Japan has approved a Web3 white paper to boost the country’s fledgling crypto industry growth. On Thursday, the East Asian nation’s ruling Liberal Democratic Party’s Web3 project team published the crypto-guiding document. The white paper proposes several recommendations for growing and enhancing Japan’s digital currency space. These include instituting more tax reforms, improved accounting standards, and a Decentralized Autonomous Organization (DAO) law. Furthermore, the comprehensive crypto document also proposes that Japan take the crypto initiative at this year’s Group of Seven (G7) summit.
The Japan Web3 white paper development feeds into Prime Minister Fumio Kishida’s overarching national strategy to boost crypto growth. Japan is making concerted efforts to create a crypto-friendly environment amid the regulatory initiatives of other governments to protect end-users. The crypto strategy of Kishida’s administration also seeks to prevent companies from leaving for other jurisdictions because of heavy tax burdens. Japan’s long-documented history of imposing hefty taxes on crypto firms is a cause for concern.
Japan Bypasses Government Bureaucracy to Expedite White Paper Development for Web3 & Blockchain
The Japanese government’s Web3 project team has circumvented the usual bureaucratic processes to ideate and expedite airtight crypto regulation. Regulatory proposals apply to every facet of the blockchain and range from non-fungible tokens (NFTs) to DAOs. In a media session, Liberal Democratic Party Web3 project team Secretary-General Akihisa Shinozaki pointed out:
“The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on.”
On the practicality of increased mainstream adoption of digital currencies and the underlying blockchain, Shiozaki also noted:
“Everyone owns wallets and digital assets as a matter of course, and Bitcoin, NFTs, and security tokens are not special but become ‘commonplace’. Such a world is beginning to materialize before our eyes.”
Furthermore, the Secretary-General also added that major players in other Japanese industries have ventured into the crypto space. These include telecom operator NTT Docomo and numerous prominent traditional financial institutions. NTT Docomo previously pledged to invest as much as 600 billion yen, or $4 billion, into Web3 infrastructure, while financial institutions plan to issue stablecoins.
In Shinozaki’s opinion, the best time to initiate a crypto white paper and enhance crypto promotion is now. The reason is that the “crypto landscape is changing at a dizzying pace.” Therefore, Shinozaki concluded, “So it’s hard to know how long this tailwind will last.”
Other White Paper Recommendations
The white paper suggests that Japan embraces the future global potential of Web3. In addition, the crypto-governing and implementation document also recommends that the nation clarifies its leading stance on tech-neutral innovation.
The Japanese crypto white paper advocates for further alterations to the tax regulation, including taxing crypto only when exchanged for fiat currency. The document also identified the urgent need for improved accounting standards since several Web3 companies encounter difficulties finding auditors. According to the white paper, ministries and government parastatals should support Japan’s Institute of Certified Public Accountants in formulating guidelines.