Japan PM pledges support for web3 revolution, describes this sector as ‘the new form of capitalism’

In an ambitious move to become a prominent hub for Web3 projects, Japan is throwing its weight behind cryptocurrencies, non-fungible tokens, blockchain gaming, and the metaverse. Despite the inherent uncertainties and volatility associated with the sector, Japanese Prime Minister, Fumio Kishida, expressed his commitment to fostering the Web3 industry during a keynote address at the WebX conference in Tokyo. 

In fact, the PM went on to describe the Web3 sector as 'the new form of capitalism' and spoke passionately about Web3's transformative potential, believing it has the capacity to revolutionise the internet and drive positive social change. He emphasised the importance of the WebX conference in attracting industry players to Japan, promoting collaboration and the birth of innovative projects. Notably, the Japanese government is striving to create a robust regulatory framework to protect investors and further encourage Web3 initiatives.

Japan's web3 initiatives to promote entrepreneurship and innovation

The Japanese government's commitment to nurturing Web3 businesses is exemplified by the "Start Next Innovator" project. Spearheaded by Japan's Economy, Trade, and Industry ministry, the initiative aims to send 1,000 entrepreneurs and students to Silicon Valley over a five-year campaign, fostering the growth of Japanese-owned Web3 startups.

Moreover, Japan's national tax agency made headlines by revising legislation in June 2023, exempting token issuers in the country from paying corporate taxes on unrealized cryptocurrency gains. This move is expected to provide further incentives for the development and expansion of the Web3 sector in the country.

Binance makes a comeback in Japan with Sakura Exchange Bitcoin acquisition

Binance's re-entry into the Japanese market was solidified through its acquisition of the local exchange platform Sakura Exchange Bitcoin (SEBC) in November 2022. The 100% ownership of the Japanese-registered crypto exchange service provider enabled Binance to offer its services to Japanese cryptocurrency users starting August this year.

During his virtual appearance at WebX, Binance CEO Changpeng Zhao praised Japan's welcoming attitude toward the Web3 sector and applauded the country's innovation-friendly approach to regulations. Having lived in Japan during the early years of his career as a developer, Zhao acknowledged the nation's well-defined boundaries on cryptocurrency regulations since 2017, which were further bolstered by stablecoin regulations passed earlier this year.

With the combined efforts of the Japanese government's regulatory initiatives and Binance's imminent presence in the country, Japan is poised to position itself as a leader in the burgeoning Web3 era, driving innovation and capitalising on the transformative potential of the technology.