Japan wants to bolster its Web3 industry through new tax reforms aimed at supporting startups in the sector.
On Aug.28, Takeru Saito, Japan’s Minister of Economy, Trade, and Industry, announced the initiative at the WebX Conference, Tokyo’s leading cryptocurrency-themed event. Saito stated, “We will help the industry create more use cases by implementing tax reforms to support the development of startups.”
He highlighted the significant potential of Japan’s Web3 and blockchain sectors, emphasizing the importance of these technologies for the country’s economic future.
The government is looking to create an environment that will attract businesses and developers from around the world. “Japan opts for Web3 to solve social issues,” said Saito, revealing the administration’s view that Web3 and blockchain technologies can play a vital role in addressing various societal challenges.
Japan’s Focus on Web3 and Blockchain Adoption
Prime Minister Fumio Kishida also revealed the government’s focus on Web3 and blockchain as critical components for solving social issues. “Web3 and blockchain technology are the foundation for solving social issues,” the Prime Minister stated. He outlined plans to create a supportive environment for the use of Web3-related tokens, enhance digital payment systems, and boost the content industry, suggesting a multifaceted approach to utilizing these technologies.
The Prime Minister further mentioned, “The government would work on creating an environment for the utilization of Web3-related tokens, facilitation of payments, and revitalization of the content industry.” This indicates a strong commitment from the top levels of government to integrate Web3 solutions across different sectors.
Institutional Investors in Japan Plan to Increase Crypto Investments
Interest in cryptocurrencies is on the rise among institutional investors in Japan, according to a survey by Nomura Holdings and its digital asset division, Laser Digital. The survey revealed that more than half of the 547 investment managers surveyed, which included institutional investors, family offices, and public-service corporations, are planning to invest in the crypto sector within the next three years.
The survey results indicate that institutional investors see crypto as a viable option for portfolio diversification. Respondents cited several reasons, including low correlation with other assets, potential as a hedge against inflation, high return potential, and the 24/7 nature of the crypto market. The study showed that “66% of the respondents chose 2-5% as their allocation when investing in crypto in the next three years,” demonstrating cautious optimism toward digital assets.
Additionally, 25% of those surveyed expressed a positive sentiment about crypto assets, pointing to a generally optimistic outlook for the future of crypto in Japan. The development of products like crypto exchange-traded funds (ETFs), investment trusts, and staking and lending options were also highlighted as key factors driving interest in the sector.
