According to Incrypted, the current party of Japan has published a Whitepaper with recommendations for the development of the cryptocurrency sector in the country. It's part of Prime Minister Fumio Kishida's technology promotion strategy called "Cool Japan."
The Web3 project team is formulating proposals to regulate everything from NFTs to DAOs. Recently, the country's Prime Minister said that they would be useful in attracting investment and expanding the economy.
Secretary General of the Government Web3 Task Force Akihisa Shiozaki said:
“The cryptocurrency sector has been a follower, but will now move towards mass adoption.”
The Whitepaper calls for Japan to show leadership at this year's G7 summit, where cryptocurrencies will be discussed. The country must look at the potential of Web3 and make its stance clear on cryptocurrencies.
The document proposes changes to tax legislation. It notes that cryptocurrency should only be taxed when assets are exchanged for fiat currency. The need for stricter accounting standards is emphasized so that Web3 companies can find auditors. Stablecoins are also being considered. The Whitepaper writes that a favorable environment should be created for the registration and development of yen-backed stablecoins.
Although large Japanese firms are interested in developing Web-3, the sector remains obscure for banks and insurance companies. Unlike other countries that want to regulate cryptocurrencies, Japan is trying to create a friendlier environment for digital assets.