Japan adopts Web3: The country is working on policy and guidelines for stablecoins, NFTs and DAOs

Japan Adopts Web3: With tight regulations already in place that helped insulate FTX Japan and its investors from heavy losses, Japan is working on policy and guidelines for stablecoins, NFTs, and DAOs as it welcomes a crypto future.

According to the proposal by Japan's ruling Liberal Democratic Party Web3 project team, From the perspective of supporting the development of the web3 business ecosystem, including support of startups and R&D of blockchain, when holding tokens issued by other parties, such tokens that are not for short-term trading purposes should be excluded from the year-end mark-to-market taxation, and, measures should be taken to value such tokens at their acquisition cost.

This tax reform, together with the measure to exclude tokens continuously held by the issuing corporation from year-end mark-to-market taxation, which was proposed in the Outline of the Tax Reform Proposal for FY2023, is essential for developing the web3 ecosystem in Japan and should be implemented promptly.

Japan was an early mover in crypto, and the setbacks came soon after. In 2014, the Japanese exchange Mt. Gox was hacked. Then, in early 2018, hackers struck again, stealing over $500 million from the Japanese exchange Coincheck in what was the biggest hack in crypto history. Not long before the Coincheck hack, Japan was poised to be a crypto capital of Asia, if not the world. But the hack spooked regulators in a big way, and Japan seemed to vanish off the crypto map. For a time it seemed almost impossible to list new tokens on exchanges.