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web3

Web3 At The Forefront: Japan Mulls Startup-Friendly Tax Reforms

Ash Tiwari
by Ash Tiwari
9 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Japan’s minister of economy, trade and industry, Takeru Saito, said on August 28, 2024, that it aims to propel its Web3 ecosystem through startup-friendly tax reforms.

Startup-Centric Tax Reforms Key To Web3 Industry Growth

To spur its Web3 industry, Japan may soon implement startup-centric tax reforms to make it easier for businesses in this sector to grow. Speaking at the WebX Conference, Saito emphasized the enormous potential of Japanese Web3 and blockchain enterprises. 

The minister underscored the importance of positive tax reforms to create an ecosystem that would attract businesses and developers worldwide to Japan. Japanese Prime Minister Fumio Kishida echoed Saito’s views.

In a video address during the WebX 2024 opening ceremony, Kishida declared that Web3 and blockchain businesses could play a pivotal role in resolving many of Japan’s societal issues. With sensible tax and legal reforms, Web3 startups would find it easier to raise funds and help generate new avenues of employment in the country.

Notably, in July 2023, the Japan Blockchain Association (JBA) petitioned the concerned Japanese authorities to slash taxes on crypto assets.

Related Reading: Aptos Foundation Partners With Alibaba Cloud To Boost Japan’s Web3 Ecosystem

Kishida added that the government will work toward fostering an environment conducive to using Web3 tokens, blockchain-powered instant payments, and revitalizing the content industry. Future policies surrounding the Web3 industry will have user protection as one of their central tenets. 

Early signs of a shift in stance toward crypto startups were noticeable in September 2023, when the Japanese government announced measures allowing startups to receive investments in cryptocurrency.

Regulatory Headwinds Remain In Japan

While the WebX Conference inspires confidence in Japan’s commitment to growing its Web3 industry, regulatory challenges surrounding digital currencies continue to be a cause of concern for the country’s crypto ecosystem.

For instance, in July 2024, leading crypto exchange gate.io shuttered its operations in Japan. The exchange stated that it aims to follow financial rules wherever it conducts business, indirectly hinting toward the rigorous cryptocurrency regulations due to money laundering and terrorism financing concerns.

Japan’s stringent cryptocurrency regulations are not without reason. In May 2024, DMM Bitcoin, a major Japan-based cryptocurrency exchange, was hacked, resulting in a loss of $305 million in Bitcoin (BTC).

Conversely, if recent developments are anything to go by, institutional appetite for Bitcoin seems to be on an upward trajectory in Japan. 

Related Reading: Crypto-ETFs In Japan Require ‘Cautious Consideration,’ Warns Regulator

In June 2024, a joint survey conducted by Nomura Holdings and Laser Digital Holdings found that 54% of those surveyed—including 547 investment managers from family offices and public interest corporations—said they would be interested in entering the digital assets market within the next three years.

Bitcoin is down 4.8% in the last 24 hours | Source: BTCUSD on TradingView.com
Featured image from Unsplash, Chart from TradingView
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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