Japan Implements Tax Reforms To Boost Web3 Industry

According to Cointelegraph, Japan is aiming to enhance its local Web3 industry by introducing tax reforms to support the growth of startups. On August 28, Japan’s Minister of Economy, Trade, and Industry, Takeru Saito, announced at a conference that he would assist the industry in creating more use cases through these tax reforms. Local media Odaily reported that Saito highlighted the significance of Web3 technology and the vast potential of Japan’s Web3 and blockchain sectors during the WebX Conference, Tokyo’s largest cryptocurrency-themed event. Saito hopes that these tax reforms will create an environment that attracts businesses and developers from around the globe. Japan has been exploring Web3 applications across various economic sectors. Prime Minister Fumio Kishida recently stated that Web3 and blockchain technology are essential for addressing social issues. The government plans to create an environment conducive to the utilization of Web3-related tokens, facilitate payments, and revitalize the content industry. On June 24, financial services firm Nomura Holdings and its digital asset arm, Laser Digital, revealed that over half of institutional investors surveyed in Japan intend to invest in the crypto sector within the next three years. The study surveyed 547 investment managers, including institutional investors, family offices, and public-service corporations. Respondents viewed crypto as a viable tool for portfolio diversification, citing reasons such as low correlation to other assets, a hedge against inflation, high return potential, and the 24/7 marketplace. The survey found that 66% of respondents planned to allocate 2-5% of their investments to crypto in the next three years. Additionally, 25% of those surveyed held a positive sentiment about crypto assets, indicating an optimistic outlook for Japan’s crypto future. The development of crypto exchange-traded funds (ETFs), investment trusts, and staking and lending options were noted as crucial factors for considering crypto investments.