Japanese Government And Industry Members Signal Commitment To Growth Of Web3 Businesses

A recent proposal issued by Japan's ruling Liberal Democratic Party, along with various other current private- and public-sector initiatives, signals a strong interest in promoting investment in and the growth of an internationally competitive Web3 business environment in Japan. Although only limited reforms have been adopted to date, the likelihood of further revisions to relevant regulations is expected to increase over the course of 2023 and beyond to address existing laws discouraging the adoption and use of cryptocurrency, DAOs, NFTs, and other Web3 technologies. These reforms are likely to focus on revising the tax code related to cryptocurrency holdings, revising processes for listing cryptocurrencies on public exchanges, facilitating the adoption of stablecoins, and recognizing the legal status of DAOs.