Japan’s Web3 project team released a white paper insisting on creating a “welcoming atmosphere” for cryptocurrency businesses in the country.
A group studying the potential impact and use of Web3, blockchain, and decentralized technologies on Japan’s economy and government structures, with the Digital Agency of Japan, released a white paper. It formulated regulatory proposals to create a “welcoming atmosphere” for cryptocurrencies in the country.
Specifically, the document states that the Japanese government should “exhibit leadership” in the crypto sector, which G7 members plan to discuss at this year’s summit. According to Masaaki Taira, Chairman of the decentralized tech study group, the government should focus on the potential benefits of Web3 innovations and provide a loyal environment for crypto companies to attract them to the country. “After crypto winter, Japan may be the first to welcome spring,” he states.
The document also cites the need to make changes to Japan’s tax laws regarding digital assets, specifically:
- Introduce tax breaks for companies that own crypto tokens not meant to be traded in the short term.
- Allow investors the option of self-assessment of their digital assets.
- Allow investors to carry forward their losses for up to three years.
- Impose taxes on cryptocurrency assets only if they have been converted into fiat.
The paper’s authors also point out that the country lacks accounting standards for crypto companies, and the government should assist the Japanese Institute of Certified Public Accountants in developing guidelines for Web3 businesses.
The document also proposes that decentralized autonomous organizations (DAO) be legally recognized as godo kaisha (GK), limited liability companies (LLC). At the end of 2022, the Digital Agency of Japan began examining such organizations and considering granting them legal status.
The authors of the document also insist on the development of yen-backed stablecoins and stress the importance of preparing the environment for stablecoin registration in the country.
Read more about the Japanese cryptocurrency market in this article by CP Media.
