Creating a Crypto-Friendly Environment
While other nations focus on consumer protection regulations, Japan is committed to establishing a welcoming environment for crypto businesses, aiming to counteract the exodus of firms to lower-tax jurisdictions. The Web3 project team has bypassed traditional bureaucratic methods to develop regulatory proposals for various aspects of the crypto world, including NFTs and DAOs.
Mass Adoption and Major Players
Akihisa Shiozaki, Secretary-General of the party’s Web3 project team, highlighted the increasing involvement of major Japanese companies in the market. Telecom giant NTT Docomo has pledged up to 600 billion yen ($4 billion) for Web3 infrastructure, while top financial institutions are exploring stablecoin issuance.
G7 Summit and Future of Web3
The white paper emphasizes Japan’s leadership in the upcoming G7 summit, where crypto will be a central topic. It calls for a proactive approach to Web3’s potential, advocating for technology-neutral and responsible innovation.
Tax Reforms and Accounting Standards
Proposed tax changes include exemptions for certain token issuers and self-assessments for investors to carry over losses for three years. Additionally, the paper identifies an urgent need for consistent accounting standards and recommends supporting the Japanese Institute of Certified Public Accountants in creating guidelines.
DAO Law and Regulatory Changes
The document suggests implementing a DAO law based on Japan’s godo kaisha business model, as well as amending the Companies Act and the Financial Instruments and Exchange Act.
Token Screening and Stablecoin Regulation
The white paper advocates for greater transparency in token review procedures and stresses the importance of establishing a stablecoin registration environment, a self-regulatory organization, and proposals for yen-backed stablecoins.
NFTs and Public-Private Partnerships
For NFTs, the paper recommends public-private collaborations to establish legal business models for fantasy sports services and resolve data and NFT rights issues, including legal licensing of NFTs.
Web3 Minister and Crypto Visas
The document proposes appointing a Web3 minister to oversee policy promotion and international cooperation, and suggests issuing crypto visas to skilled professionals while expanding the startup visa system.
What is the purpose of the Web3 white paper?
The white paper outlines strategies to promote growth in Japan’s crypto industry, including
tax reforms, accounting standards clarification, and a DAO law.
How is Japan fostering a crypto-friendly environment?
By bypassing traditional bureaucratic methods, Japan’s Web3 project team is developing regulatory proposals for various aspects of the crypto world, such as NFTs and DAOs, to attract businesses and encourage growth.
What tax reforms are proposed in the white paper?
Proposed tax changes include exemptions for certain token issuers and self-assessments for investors to carry over losses for three years. Crypto assets should be taxed only when exchanged for fiat currency.
What is the white paper’s stance on NFTs?
The document recommends public-private partnerships to establish legal business models for fantasy sports services and to resolve data and NFT rights issues, including legal licensing of NFTs.
How does the white paper address international cooperation?
The paper proposes appointing a Web3 minister to oversee policy promotion and international cooperation. It also suggests issuing crypto visas to skilled professionals and expanding the startup visa system.