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In a strategic move to bolster Japan’s position in the digital economy, Digital Minister Masaaki Taira has announced the reorganization of the country’s cryptocurrency and Web3 policy framework.
This restructuring involves dissolving the Liberal Democratic Party's (LDP) Web3 Project Team and forming a dedicated crypto-focused unit within the Digital Society Promotion Department. The new unit will be led by Akihisa Shiozaki, a seasoned advocate for progressive digital asset policies, according to a report by PANews on Friday.
Evolution of Japan’s Web3 Strategy
The original Web3 Project Team was conceived under former Prime Minister Fumio Kishida, who viewed blockchain, cryptocurrency, and NFTs as economic growth engines. Kishida championed Web3 as a cornerstone of his economic revitalization plan, promoting it as a means to attract innovation and investment. However, his resignation earlier this year paved the way for a recalibrated approach under Prime Minister Shigeru Ishiba and Digital Minister Taira.
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The new structure reaffirms the government's commitment to advancing blockchain and cryptocurrency integration, Ishiba said. His administration has prioritized the application of blockchain technologies in sectors such as tourism and regional development, as outlined in his policy manifesto, Regional Revitalization 2.0. This reorganization aligns with these broader goals while addressing operational inefficiencies in the previous framework.
As the former secretary-general of the Web3 Project Team, Shiozaki has been instrumental in shaping Japan’s regulatory landscape. Notably, he advocated for separate taxation on crypto gains, a recommendation included in the influential Web3 White Paper 2024. His leadership in the new crypto unit signals a continued emphasis on refining regulations to foster innovation while ensuring investor protection.
Policy Implications and Future Directions
While the full responsibilities of the revamped Digital Society Promotion Department remain unclear, the government has reiterated its intention to promote Web3-related businesses.
This includes refining taxation laws, addressing scalability concerns, and fostering a more favorable ecosystem for startups and investors. Recent revisions to corporate tax rules on crypto gains underscore Japan’s responsiveness to industry feedback.
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