Japanese Minister of Economy, Trade and Industry, Takeru Saito, He said On August 28, 2024, it announced that it aims to boost its Web3 ecosystem through startup-friendly tax reforms.
Tax reforms targeting startups are key to the growth of the Web3 industry
To stimulate the Web3 industry, Japan may soon implement startup-focused tax reforms to facilitate the growth of companies in this sector. Speaking at the WebX conference, Saito emphasized the huge potential of Japanese Web3 and blockchain companies.
The minister stressed the importance of positive tax reforms to create an ecosystem that will attract companies and developers around the world to Japan. Saito’s views were echoed by Japanese Prime Minister Fumio Kishida.
In a video speech at the opening ceremony of WebX 2024, Kishida declared that Web3 and blockchain companies could play a pivotal role in solving many societal issues in Japan. With reasonable tax and legal reforms, Web3 startups will find it easier to raise money and help generate new employment opportunities in the country.
It is worth noting that in July 2023, the Japan Blockchain Association (JBA) announced Petition filed Japanese authorities are cutting taxes on crypto assets.
Kishida added that the government will work to foster an environment conducive to the use of Web3 tokens, blockchain-powered instant payments, and revitalize the content industry. Future policies surrounding the Web3 industry will place user protection as one of its core principles.
Early signs of a shift in attitude towards crypto startups were noticeable. In September 2023, when the Japanese government announced measures allowing startups to receive investments in Cryptocurrency.
Regulatory headwinds remain in Japan
While the WebX conference instills confidence in Japan’s commitment to growing the Web3 industry, the regulatory challenges surrounding cryptocurrencies remain a cause for concern for the country’s crypto ecosystem.
For example, in July 2024, leading cryptocurrency exchange gate.io closed Its operations in Japan. The exchange said it aims to follow financial rules wherever it operates, an indirect reference to strict regulations on cryptocurrencies due to money laundering and terrorist financing concerns.
Japan’s strict rules on cryptocurrencies are not without reason. In May 2024, DMM Bitcoin, a major cryptocurrency exchange based in Japan, announced the launch of a new service.It was hacked, resulting in $305 Million Lost in Bitcoin (BTC).
Conversely, if recent developments are any indication, institutional appetite for Bitcoin appears to be on the rise in Japan.
In June 2024, Nomura Holdings and Laser Digital Holdings conducted a joint survey Found 54% of those surveyed — including 547 investment managers from family offices and public interest firms — said they would be interested in entering the digital asset market within the next three years.
Featured image from Unsplash, chart from TradingView