After businesses started moving to other countries because of the high taxes there, Japan is working to make the environment for cryptocurrencies more welcoming.
In contrast, it has gone beyond the project team Web3's usual bureaucratic procedures in drafting regulatory proposals for everything from Non-Fungible Tokens (NFTs) to Decentralized Autonomous Organizations (DAOs), according to Akihisa Shiozaki, the party-affiliated general secretary.
The cryptocurrency industry has always been driven by early adopters, but from now on, it will be driven by mass adoption, according to Shiozaki. Large companies have started entering the market, and NTT Docomo, a Japanese mobile operator, has pledged to invest up to 600 billion yen (four billion dollars) in infrastructure Web3. Large financial institutions are looking to issue stablecoins.
In a related vein, the white paper makes the point that Japan ought to lead at the G7 summit this year—which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—where cryptocurrencies will be discussed. It says that Japan ought to look to the potential of Web3 in the future and show that it leads in technology innovation that is neutral and responsible.
Additionally, the document stated that ministries and agencies should assist the Japan Institute of Certified Public Accountants in drafting guidelines and that companies faced Web3 Difficulties in finding auditors due to the absence of accounting standards.
Last year, Japan passed a framework to regulate stablecoins, and large Japanese businesses have also expressed interest in the Web3 sector.
The white paper, on the other hand, says that the government should set guidelines for banks and insurers entering the industry because approvals are still unclear.
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