Japan's Prime Minister points towards blockchain and Web3 as the key to reignite the country's slumbering economy

Japan is taking a huge step towards blockchain and NFT as the newly appointed Japanese Prime Minister Shigeru Ishiba promises to use blockchain technology and non-fungible tokens to revalue local assets such as food and tourism.

The new Prime Minister has announced that his first order of business is to excute a major restructuring of the crypto regulations in Japan to strengthen and support the growth of crypto in Japan.

Japan roadmap to spread the advocacy of crypto to rural regions

Ishiba's vision is in line with the needs of the various crypto industry groups advocating for the broader use of NFTs and Decentralized Autonomous Organizations (DAOs) to revitalize rural economies, fostering innovation and sustainability. As part of its "Regional Revitalization 2.0" strategy, the Japanes government continues to aim to "correct the over-concentration of business in Tokyo and maximize the potential of regional areas.

In his policy document, Ishiba wrote;

“We aim to use blockchain, NFTs, and more to maximize the value of a wide range of local products, including food and tourism experiences.”

Many crypto traders and investors also celebrated and expressed their optimism towards the future of Japan's crypto ecosystem. Forj CEO Harry Liu commented on his X that Ishiba's appointment as Prime Minister is "a bullish sign for Japan's Web3 future!"

Additionally, Ishiba will also appoint Masaaki Taira, the current chief of LDP’s Web3 task force, to be the next Minister of Digital Affairs in Ishiba's administration. Taira has previously suggested initiatives to apply Japanese intellectual property laws to NFTs and proposed tax reforms aimed at boosting the country's crypto startups.

International Firms flock to Japan

The bullish prospect of Japan's crypto market has since then attracted the attention of international firms, including Binance, into the Japanese market.

The Japanese government's involvement is not limited to policy adjustments; it extends to high profile events like the Webx conference, where government officials, including Prime Minister Kishida and the economic minister, showcased their support for the crypto and Web3 sectors.

The global crypto race

South Korea currently faces challenges due to regulatory constraints and a decline in investors' interest. The contrasting trajectories of Japan and South Korea highlight the competitive nature of countries in embracing decentralized technologies.

The global impact of these developments is significant. As countries vie to attract crypto-related businesses and investments, the decentralized nature of cryptocurrencies empowers individuals to operate beyond national borders.

Investors are no longer restricted by geographic limitations, creating a fast-evolving landscape where nations must continuously adapt to stay competitive.

Japan reviewing crypto regulations to ease the tax burden

On September 30, Japan’s Financial Services Agency announced plans to review the nation’s cryptocurrency regulations, which could lead to reduced taxes and enable domestic funds to invest in tokens.

The review could cut current tax rates on crypto gains, potentially aligning them with those on other investment assets, ranging from 20% to 55%. Meanwhile, Japan’s crypto market is rebounding, with monthly trading volumes on centralized exchanges nearing $10 billion, according to CCData.

Earlier in February, Japan took a significant step to support its blockchain ecosystem by allowing local investment limited partnerships to invest in cryptocurrencies, encouraging venture capital investment in web3 projects.