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 industries.
Kishida made these comments during his keynote speech at the WebX2024 conference on August 28. He also highlighted Japan’s proactive approach during the lecture, noting that the country has implemented important regulatory measures to help nourish the ecosystem.
Supportive reforms
Kishida highlighted the government’s recent tax reforms as a cornerstone of Japan’s strategy to support Web3 startups, noting that the industry has grown since the changes.
One of these reforms is the elimination of taxes on unrealized crypto profits, a move aimed at reducing financial pressure on emerging companies and encouraging innovation in the sector. By easing these burdens, Japan hopes to attract both domestic and international entrepreneurs to its fast-growing Web3 ecosystem.
Kishida also discussed new changes in the law that will allow limited partnerships to invest in and hold digital assets. The new rules are expected to significantly boost domestic investment in Web3 ventures, which has 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 decentralized autonomous organizations (DAOs) and suggests creating a legal framework to recognize their status, further demonstrating the government’s commitment to creating a supportive environment for Web3 to promote.
‘New Capitalism’
Kishida linked the government’s support for Web3 technologies to his broader “New Capitalism” policy, which aims to balance economic growth with social welfare by using innovative technologies to tackle societal challenges.
He highlighted how Web3 and blockchain technologies can play a crucial role in this vision by promoting financial inclusion, revitalizing the content industry and enabling new forms of intellectual property management. Kishida described them as crucial tools for boosting innovation and solving social problems, which are central to his economic agenda.
The Prime Minister also emphasized that ‘new capitalism’ means more than just economic policy; it’s about creating a society where innovation leads to tangible improvements in people’s lives. He described Web3 as an essential part of this strategy, noting that its potential to revolutionize various industries aligns with the goals of his administration’s economic reform efforts.
Kishida praised the rapid adoption of Web3 technologies by the private sector, noting that several major companies have already started integrating blockchain solutions into their business models. He emphasized the government’s proactive stance aimed at complementing these developments and ensuring Japan remains at the forefront of global technological innovation.