Japan to invest in metaverse and NFT expansion

Earlier this year, Japanese Prime Minister Fumio Kishida, declared that the country’s growth plan includes technologies related to Web3, the Metaverse, and non-fungible tokens (NFTs).

October 3rd, during a public policy speech at Japan’s National Diet, Kishida stated that as part of the government’s commitment to digital transformation, proof of attendance NFTs using digital technology was previously given to local mayors for their achievements and ideas centered on the digital economy for their cities. The NFT awards are non-transferable and cannot be sold on the secondary market.

He also mentioned that the government will continue to support "the social implementation of digital technology” and “promote efforts to expand the use of Web3 services that utilize the metaverse and NFTs”.

In April, Kishida’s Liberal Democratic Party published an “NFT White Paper” which described Web3 as “the new frontier of the digital economy” and outlined Japan’s strategy for advancing in Web3.

"This document looks ahead to the Web 3.0 era that we are now entering and focuses not only on the issues specific to NFT businesses, but comprehensively addresses issues and solutions for the development of rules for crypto assets (including stable coins), which are the main payment method for NFT transactions, and the blockchain ecosystem as a whole, which is the foundation of Web 3.0.", as per the NFT White Paper.

The Ministry of Economy, Trade, and Industry (METI) recently set up a Web3 Policy Promotion Office that will be responsible for integrating Web3 in business-related projects such as industrial finance, corporate system, taxation as well as industries sectors like fashion, sports, entertainment, and media.

“Given that some entrepreneurs pursuing Web3-related business are leaving Japan for opportunities overseas, deliberations toward developing the business environment in Japan need to be accelerated,” the ministry wrote.

As part of a joint effort with the United States, Kishida stated that Japan's technology investment would include reform regulations related to the tech industry and the development and production of semiconductors.

Japan's crypto taxes consider easing

Although high tax liabilities faced by Japanese crypto startups could be the main reason behind the incapacity of new projects to launch in the country, Yoshihide Suga, former Prime Minister, suggested he was in favor of taxing Bitcoin (BTC) transactions in Japan.

Since Kishida took over the office, crypto users in Japan have seen several developments in the space, including reintroducing crypto ATMs in the country. In August, the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association asked for crypto gains tax reduction from 55% to 20% for individual investors.

Meanwhile, the Japanese authorities are planning on adding monitoring capabilities to provide user data that will help track money transfers by people engaged in illegal activities. 

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