Japan Doubles Down on Web3 Investments

Japan Doubles Down on Web3 Investments
7 October 2022

Japan will be promoting a slew of Web3 services as part of its broader efforts to ramp up investments in digital transformation, according to Prime Minister Fumio Kishida.

In a public policy speech delivered before Japan’s National Diet on Monday, Kishida said that the country is already using Web3-based technologies to solve challenge in local jurisdictions, including issuing NFTs to authorities – seven mayors were given Ethereum based Proof-of-Attendance (PoA) NFTs as awards to recognise their contribution to Japan’s digital economy.

Kishida also hinted at digitizing national identity cards, while stressing that the cabinet would “promote effots to expand the use of Web 3.0 services that utilize the metaverse and NFTs.”

“The Japanese government’s support for NFTs and metaverse services is a welcome and commendable step and has affirmed Japan’s commitment to Web3. There has been a great deal of effort from many parties involved to reach this point,” Daiki Moriyama, director of gaming blockchain Oasys, told Blockhead.

Obstacles remain

“However, we note the omission of any mention of fungible tokens in the Japanese government’s new plans. Until this is addressed, it will continue to be a major obstacle for the growth of the blockchain gaming industry, and means that a number of companies and entrepreneurs will still base their operations out of Japan,” he added.

Since Kishida’s appointment in October last year, Japan has been trying to drive web3 adoption. The country recently established a web3 policy office under the Ministry of Economy, Trade, and Industry (METI) focused on creating policies for.

In April, Kishida’s Liberal Democratic Party released an “NFT White Paper” which outlined plans to further the country’s strategies on web3.

The government also recently proposed a 20% tax on income tax on cryptocurrency gains earned by individual investors, with an alternative to carry forward losses for the next three years from the next year. The move will likely provide relief to digital asset investors in Japan as the tax rate is currently 55%.

Blockhead Team
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