Japan’s ruling Liberal Democratic Party’s Web3 project team has published a white paper proposing recommendations to promote the growth of the crypto industry in the country. The white paper suggests more tax reforms, clearer accounting standards, and a DAO law, among other proposals. The team aims to create a more favorable environment for the crypto industry, unlike other governments that focus on consumer protection regulation. The proposals are part of Prime Minister Fumio Kishida’s “Cool Japan” project, which seeks to promote technology.
Web3 team bypasses bureaucracy to formulate regulatory proposals for NFTs and DAOs
The Web3 project team has been bypassing bureaucratic processes to formulate regulatory proposals for NFTs and decentralized autonomous organizations. The white paper identifies a lack of accounting standards as an urgent issue, as Web3 companies have had difficulties finding auditors. It recommends that ministries and agencies support the Japanese Institute of Certified Public Accountants in formulating guidelines.
Japan seeks to demonstrate leadership in Group of Seven summit
The white paper notes that Japan should demonstrate leadership at the Group of Seven summit this year, where crypto will be discussed. It proposes further changes to tax regulation and advises allowing self-assessments for investors to carry over losses for three years. Crypto assets should only be taxed when exchanged for fiat currency.
Japan’s large companies show interest in Web3 industry
The white paper mentions that major Japanese companies, such as NTT Docomo, have started to enter the Web3 market. The paper stresses the importance of creating a process for stablecoin registration and establishing a self-regulatory organization. Large companies in Japan have shown interest in the industry, but the approvals for banks and insurance companies entering the industry remain unclear. The government should lay out guidelines.
Proposals for public-private partnerships and crypto visas
The white paper proposes public-private partnerships to set guidelines for legal business models for fantasy sports services. It also recommends the issuance of crypto visas to skilled workers and expanding the startup visa system. The document proposes that a Web3 minister takes charge of promoting policies and cooperation with other countries. The Digital Agency will set up a related consultation desk for local governments and business operators.
Japan seeks to clarify its leading position on technology-neutral and responsible innovation, the white paper concludes.
