Japan’s Web3 Whitepaper Calls for Proactive Measures to Boost Crypto Adoption

Japan’s web3 project team of the Liberal Democratic Party has released a whitepaper titled “Towards an Era Where Everyone Utilizes Digital Assets,” which proposes several recommendations for Japan’s cryptocurrency industry. The document highlights the need for responsible and innovative practices in the field and suggests that Japan should play a leadership role in shaping international regulations for web3 technologies.

 “Japan may be the first to welcome spring after crypto winter,”

the document states.

The whitepaper addresses various challenges facing Japan’s adoption of web3 technology, including slow approval processes for new tokens, lack of secondary markets for security tokens, and legal uncertainty surrounding digital asset transactions. It also highlights concerns centered around consumer protection, unlicensed NFTs, and using unhosted wallets.

To address these challenges, the whitepaper proposes specific changes to Japan’s tax regime for cryptocurrency income, including revising tax reporting and carryover deductions for up to three years. It also suggests accelerating accounting standards and guidelines for web3 businesses and establishing a new law tailored to DAOs.

Moreover, the whitepaper suggests that the Japanese government should work with the Japan Virtual Currency Exchange Association (JVCEA) to streamline the approval process for new tokens and launch a self-regulatory body to encourage compliance. It also recommends establishing regulations for trading security tokens and exploring digital trading methods to increase liquidity.

To increase transparency and support the overseas expansion of web3 content industries, including NFTs, the government should provide guidance and support for efficient application processes, as well as match companies with overseas tax incentives. The whitepaper also recommends enhancing collaboration between local governments and related government agencies to address the challenges of web3 technology.

The whitepaper provides a comprehensive roadmap for Japan’s cryptocurrency industry and highlights the need for responsible and innovative practices in the field. The proposals and concerns outlined in the whitepaper offer valuable insights for policymakers, financial regulators, and industry players to ensure the successful adoption and implementation of web3 technology in Japan.

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