Japan Approves Web3 White Paper, Contains Tax Reform, Clearer Accounting Standards, and DAO Law

Japan’s ruling Liberal Democratic Party’s Web3 project team has approved a white paper with proposals for developing the country’s industry, CoinDesk reported. The white paper states that Japan should discuss cryptocurrencies at this year's G7 summit. It recommends that the nation should envision the future potential of Web3 and identify its leadership in technology-neutral and responsible innovation. The white paper proposes further changes to tax regulations, noting that a significant exemption has been granted for token issuers. These include tax exemptions for companies that hold tokens issued by other companies that will not be traded short-term. It proposes allowing self-assessments so investors can carry losses forward for three years and that cryptocurrencies should only be taxed when assets are converted into fiat currencies. It also proposes DAO law based on Japan's godo kaisha, a type of business similar to a limited liability company. On the NFT side, the white paper proposes a public-private partnership to develop guidelines for legal business models for fantasy sports services.