Japan eyes Web3 growth with startup-focused tax reforms

Japan is looking to boost the local Web3 industry by implementing tax reforms that support the development of startups.

On Aug. 28, Japan’s minister of economy, trade and industry, Takeru Saito, said while speaking at a conference that he would help the industry create more use cases by implementing tax reforms to support the development of startups.

According to local media Odaily, the minister emphasized the importance of Web3 technology and the massive potential of Japan’s Web3 and blockchain industries at the WebX Conference, Tokyo’s largest cryptocurrency-themed event.

Through tax reforms, Saito hopes to create an environment that would lure businesses and developers worldwide. 

Japan opts for Web3 to solve social issues

Japan has been looking to implement Web3 use cases across several areas of its economy. Prime Minister Fumio Kishida recently declared that Web3 and blockchain technology are the foundation for solving social issues.

The Prime Minister also said that the government would work on creating an environment for the utilization of Web3-related tokens, facilitation of payments, and revitalization of the content industry.

Rising crypto adoption in Japan

On June 24, financial services firm Nomura Holdings and its digital asset arm, Laser Digital, revealed that more than half of institutional investors surveyed in Japan expressed intentions to invest in the crypto sector in the next three years. 

The study approached 547 investment managers, including institutional investors, family offices and public-service corporations.

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The respondents said they saw crypto as a viable tool for diversifying their portfolio. Other reasons included low correlation to other assets, hedge against inflation, high return potential and crypto’s 24/7 marketplace. The survey found that 66% of the respondents chose 2-5% as their allocation when investing in crypto in the next three years.

Additionally, 25% of those surveyed held a positive sentiment about crypto assets, suggesting an optimistic outlook for Japan’s crypto future. 

The survey highlighted the development of crypto exchange-traded funds (ETFs), investment trusts, and staking and lending options as crucial reasons for considering crypto.

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