Amidst the growing acceptance of cryptocurrency by institutional investors and governments, the Japanese government is mentally prepared to support Web3 startups by creating a supportive environment in the like of tax reforms and necessary legal reforms.
Japanese Minister of Industry and Trade, Takeshi Saito said that he would help the industry create more use cases by implementing tax reforms to support the development of Web3 startups. He was talking at Japan’s largest WebX2024 conference held on Aug. 28-29.
WebX2024 is the leading international conference for Web3 technologies in Asia. This event offers a unique platform for professionals to connect with industry leaders, explore the latest trends, and gain valuable insights.
According to the Odaily Daily, Japanese local media, Saito highlighted the importance of Web3 technology and the potential of the web3 industry in Japan that comes through tax reforms.
As per X-post from Wu Blockchain, Japan is working on using Web3 in many areas of its economy. Japanese Prime Minister Fumio Kishida, in the WebX2024 conference, expressed his faith in Web3 and blockchain technology in solving social issues. Kishida further revealed the government’s plan for tax reforms and legal reforms to create an environment for Web3 startups to raise funds, utilize Web3-related tokens, facilitate payments, and revitalize the content industry.
These steps from the Japanese government align with the rising adoption of cryptocurrencies by Japanese investors. As per the survey, conducted among 547 investment managers from institutional investors, family offices, and public service corporations, by the financial services firm Nomura Holdings and its asset arm, Laser Digital, more than 50% of the Japanese institutional investors intended to invest in cryptocurrency in the next three years.
The reasons behind their choice of crypto were portfolio diversification, hedge against inflation, high return potentials, unstoppable marketplace, and low correlation with other assets. Out of the surveyed investors, 66% were found planning to invest 2 to 5% of their portfolio as crypto investment in the coming three years. Moreover, 25% were positive on cryptocurrencies indicating a strong overall sentiment of 81% in favor of digital assets.
The survey results, coupled with the government’s supportive initiatives for Web3 startups, strongly suggest that Japan is poised to become a fertile ground for cryptocurrency and related products. These factors collectively position the country as an attractive market for investors and businesses alike.
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