Japan plans tax reforms to drive Web3 and blockchain growth

Japan is aiming to enhance its Web3 industry through new tax reforms designed to foster the growth of startups. 

During a recent conference, Takeru Saito, Japan's minister of economy, trade, and industry, stated his commitment to supporting the Web3 sector by promoting tax changes that will create more opportunities for businesses and developers. 

At the WebX Conference, Tokyo's largest event focused on cryptocurrency, Saito highlighted the significant potential of Web3 technology and Japan's blockchain industry. 

He emphasised that these tax reforms aim to establish an environment that attracts global businesses and developers to Japan, encouraging innovation in the field. 

Japan's government is also exploring various applications of Web3 technology to address social issues. 

Prime Minister Fumio Kishida has stated that Web3 and blockchain technology are seen as essential tools for solving such problems. 

He has announced plans to create a favorable environment for the use of Web3-related tokens, simplify payment processes, and boost the content industry. 

The growing interest in crypto in Japan is further supported by recent survey results from Nomura Holdings and its digital asset arm, Laser Digital. 

Conducted on June 24, the survey found that over half of the 547 investment managers surveyed, including institutional investors, family offices, and public-service corporations, expressed intentions to invest in crypto over the next three years. 

The survey results indicated that these investors view crypto as a valuable tool for diversifying portfolios, offering low correlation to other assets, protection against inflation, and high return potential. 

About 66% of respondents chose to allocate between 2-5% of their investments in crypto in the coming years. 

Additionally, 25% of the respondents had a positive outlook on crypto assets, signaling optimism for Japan’s crypto future. 

The development of crypto exchange-traded funds (ETFs), investment trusts, and other options were seen as key reasons for this growing interest.