Japanese Prime Minister Fumio Kishida said the country plans to become a leader in Web3 innovation and reaffirmed the government’s strong support for the blockchain and crypto industry.
Kishida made the remarks during his keynote speech at the WebX2024 conference on Aug. 28. He also highlighted Japan’s proactive approach during his speech, noting that the country has implemented significant regulatory measures to help nurture the ecosystem.
Favorable reforms
Kishida pointed to the government’s recent tax reforms as a cornerstone of Japan’s strategy to support Web3 startups and noted that the industry has been growing since the changes.
Among the reforms is the removal of taxes on unrealized gains from cryptocurrencies, a move aimed at reducing financial pressures on emerging companies and encouraging innovation in the sector. By easing these burdens, Japan hopes to attract domestic and international entrepreneurs to its burgeoning Web3 ecosystem.
Mr. Kishida also discussed new legislative changes that allow limited partnerships to invest in and hold digital assets. The new rules are expected to significantly boost domestic investment in Web3 companies, which have been a key focus of the government’s efforts to position Japan as a global hub for blockchain innovation.
The Prime Minister also referred to a government white paper that explores the potential of decentralised autonomous organisations (DAOs) and suggests creating a legal framework to recognise their status, demonstrating the government’s commitment to fostering an enabling environment for Web3.
“New capitalism”
Kishida linked the government’s support for Web3 technologies to his broader “New Capitalism” policy, which aims to balance economic growth and social welfare by harnessing innovative technologies to address societal challenges.
He highlighted the critical role that Web3 and blockchain technologies could play in this vision by promoting financial inclusion, revitalizing the content industry, and enabling new forms of intellectual property management. Kishida described them as essential tools for driving innovation and solving social problems, which are at the heart of his economic agenda.
The prime minister also stressed that the “new capitalism” is about more than just economic policies: it is about creating a society in which innovation leads to tangible improvements in people’s lives. He touted Web3 as a key part of this strategy, noting that its potential to revolutionize various sectors aligns with the goals of his administration’s economic reform efforts.
Mr. Kishida praised the rapid adoption of Web3 technologies by the private sector, noting that several large companies have already begun to integrate blockchain solutions into their business models. He highlighted the government’s proactive stance, designed to complement these developments and ensure that Japan remains at the forefront of global technological innovation.
