NTT Docomo's $4 Billion Pledge and Financial Giants' Stablecoin Plans Signal Industry Shift in Japan's Web3 Revolution

Japan's ruling Liberal Democratic Party's Web3 project team has published a white paper laying out recommendations for growing the country's Web3 industry, which has become a part of national strategy under Prime Minister Fumio Kishida's administration. The document proposes more tax reform, clearer accounting standards and a DAO law. The white paper notes that Japan should demonstrate leadership at the Group of Seven (G7) summit this year, where crypto will be discussed.

While other governments are looking to put regulation in place to protect consumers, Japan is forging ahead with a bid to create a friendlier environment for crypto after firms began leaving for other jurisdictions due to heavy tax burdens. The Web3 project team has been bypassing the usual bureaucratic processes to formulate regulatory proposals for everything from non-fungible tokens (NFT) to decentralized autonomous organizations (DAO). "The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on," said Secretary-General of the party's Web3 project team Akihisa Shiozaki in an interview with CoinDesk Japan. Shiozaki pointed out that major players in Japan have started to enter the market.

Japanese mobile phone operator NTT Docomo pledged to invest up to 600 billion yen ($4 billion) into Web3 infrastructure and major financial institutions are looking to issue stablecoins. The white paper proposes further changes to tax regulation, noting that one significant exemption for token issuers has already been approved. Among these are having tax exclusions for companies holding tokens issued by other companies that are not going to be traded short-term. It advises allowing self-assessments so that investors can carry over losses for three years and that crypto should be taxed only when the assets are exchanged for fiat currency.

The document identifies a lack of accounting standards as an urgent issue as Web3 companies have had difficulties finding auditors. It says that ministries and agencies should support the Japanese Institute of Certified Public Accountants in formulating guidelines. It also advises setting up a DAO law based on Japan's godo kaisha (a type of business similar to a limited liability company) and making changes to regulations under the Companies Act and the Financial Instruments and Exchange Act.

On NFTs, the white paper proposes public-private partnerships to formulate guidelines on legal business models for fantasy sports services. It also recommends the public and private sectors work together to sort out data and NFT rights, and consider ways for content holders to legally license NFTs. Large companies in Japan have shown interest in the Web3 industry. However, the white paper says that approvals for banks and insurance companies entering the industry remain unclear and advises laying out guidelines.

The new white paper stresses the importance of readying the environment for stablecoin registration and establishing a self-regulatory organization. It also mentions developing proposals for yen-backed stablecoins. Japan passed a framework for regulating stablecoins last year. The white paper notes that the screening process for tokens already in circulation is shortening but reviewing new tokens issued by foreign entities remains slow. It advises making procedures more transparent so that issuers can present information necessary for review.

A Web3 minister should take charge of promoting policies and cooperation with other countries, according to the document. It says that Japan's Digital Agency will set up a related consultation desk for local governments and business operators. It also proposes the issuance of crypto visas to skilled workers, and expanding the startup visa system.

Japan's Web3 Revolution has gained momentum with the approval of a white paper aimed at promoting industry growth in the country. The recommendations made in the white paper propose significant changes to tax regulation, clearer accounting standards, and a DAO law. Japan is forging ahead with creating a friendly environment for crypto, and major players such as NTT Docomo and financial institutions are already making significant investments in the Web3 industry.

The white paper also stresses the importance of establishing a self-regulatory organization and readying the environment for stablecoin registration, while proposing public-private partnerships to formulate guidelines for legal business models for fantasy sports services and NFTs. With the proposed changes and initiatives outlined in the white paper, Japan aims to take a leading position in the Web3 industry and become a model for responsible innovation.

As the industry continues to evolve, it will be interesting to see how Japan's efforts to foster a favorable environment for crypto and Web3 development will shape the global landscape.

globalstablecoins.co.uk

Disclaimer:

GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.

Affiliate Disclosure / Sponsored Posts:

If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

GlobalStablecoins.com may receive compensation for affiliate links. Should you perform activities in relation to an affiliate link, it is understood that some form of compensation might be made to GlobalStablecoins.com. For example, if you click on an affiliate link, and sign up and trade on an exchange, GlobalStablecoins.com may receive compensation. 

Before you invest in Cryptoassets you should be aware of the following,

Cryptoassets are considered very high risk, speculative investments.

If you invest in Cryptoassets you should be prepared to lose all your money.

All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.

The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com. 

If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation