Japan's Prime Minister Fumio Kishida has approved a web3 white paper detailing development plans for the country's crypto industry, including a crypto visa.
The Liberal Democratic Party's Web3 project team is behind the paper, and is part of Kishida's "Cool Japan" project, which promotes technology.
The white paper proposes that Japan should demonstrate leadership at the G7 summit as crypto will be a topic of discussion. Japan should also look at web3's potential for the future and affirm its leading position on responsible innovation
Tax regulation including tax exclusion for companies holding tokens issued by other companies that are not traded in the short term was also proposed. Crypto should only be taxed when digital assets are exchanged for fiat.
The document further calls for improved accounting standards that make it easier for web3 companies to find auditors, suggesting that ministries and agencies cooperate with the Japanese Institute of Certified Public Accountants in establishing guidelines.
A DAO law based on Japan's Godo Kaisha is also suggested. The term "Godo Kaisha" is translated as "limited liability company" in English.
Current processes for new tokens issued by foreign entities are criticised by the document for being slow. The document calls for greater transparency for review and stresses the importance of creating a favourable environment for stablecoin regulation.
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Other approval processes for banks and insurance companies delving into web3 are unclear according to the white paper, which further suggests public-private partnerships to prepare guidelines on legal business models NFT rights.
To oversee and lead policy promotion, the appointment of a web3 minister is encouraged, with the Digital Agency of Japan providing counselling desks for local governments and businesses.
Crypto visas to attract skilled workers, and expanding the country's startup visa system are also suggested.
Akihisa Shiozaki, secretary general of the party’s Web3 project team, said in an interview: “The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on.”
Japan's crypto stance
Clearly, the Liberal Democratic Party is warm to web3, but Japan still remains steady and cautious, with three major banks in the country preparing to pilot their stablecoins on a public blockchain.
Tokyo Kiraboshi Financial Group, Minna no Bank and Shikoku Bank will issue their own stablecoins via the Japan Open Chain, a public blockchain fully compatible with Ethereum that complies with Japanese law developed by Web3 infrastructure company GU Technologies.
Read more: Japanese Banks to Pilot Stablecoins on "Japan Open Chain"
The test will initially focus on the issuance and remittance of "electronic money," with future plans for a stablecoin system involving local governments and private companies.
Since Prime Minister Fumio Kishida’s appointment last year, Japan has been trying to drive Web3 adoption. The country recently established a Web3 policy office under the Ministry of Economy, Trade, and Industry (METI).
Related: Japan Finance, Tech Firms Collaborate on "Metaverse Economic Zone"
Earlier this year, Japan's Financial Services Agency (FSA) announced that it will allow stablecoin trading by June 2023.
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