Under Prime Minister Fumio Kishida’s leadership, the Web3 project team of Japan’s ruling Liberal Democratic Party published a white paper with suggestions for growing the country’s sector. This paper is now part of the country’s overall strategy.
While other governments try to make rules to protect consumers, Japan is moving forward with a plan to make it easier for companies to use cryptocurrency. This is because companies left Japan because of the high taxes.
The Web3 project team has avoided standard bureaucratic processes to come up with ideas for how to regulate non-fungible tokens (NFT) and decentralized autonomous organizations. (DAO). (DAO).
Akihisa Shiozaki, Secretary-General of the party’s Web3 project team, said, “The cryptocurrency industry has been driven by early adopters, but it will shift to mass adoption from now on.”
Shiozaki said that big Japanese corporations have started to get into the business. NTT Docomo, a Japanese mobile phone company, has promised to invest up to 600 billion yen ($4 billion) in Web3 infrastructure, and major financial institutions are looking to create stablecoins.
White paper details
The white paper states that Japan should take the lead at this year’s Group of Seven (G7) conference, where crypto will be discussed. People say that the country should think about what Web3 could do in the future and explain why it is the leader in technology-neutral and responsible innovation.
Also, it advises making more changes to tax rules, pointing out that token issuers have already been given a big break. Among these are tax breaks for companies who possess tokens made by other companies that aren’t meant to be traded quickly. It says that investors should be able to report their own taxes and that cryptocurrencies should only be taxed when they are traded for fiat cash.
The letter says that the lack of accounting standards is an urgent problem because Web3 companies have had problems finding auditors. It says that the Japanese Institute of Certified Public Accountants should work with ministries and agencies to make rules.
It also includes making changes to the Companies Act, the Financial Instruments and Exchange Act, and a DAO law modeled on Japan’s godo kaisha, which is similar to a limited liability company.
In the white paper, it shows that the process for evaluating tokens that are currently in circulation is getting easier, but that evaluating new tokens from foreign companies is still time-consuming. It suggests making procedures more open so that issuers can give the information that needs to be looked at.
The white paper to create legal business standards
Japan enacted a set of rules for stablecoins last year. In the new white paper, it is stressed how important it is to get ready for stablecoin registration and set up an independent regulatory agency. Plans for stablecoins backed by the yen are also mentioned.
The big companies in Japan have shown interest in the Web3 industry. But the white paper says that approvals for banks and insurance companies to go into the market are still not clear, so guidelines should be made.
Concerning Non-Financial Transactions, the white paper promotes public-private partnerships to create legal business model standards for fantasy sports services. The research also suggests that the public and private sectors work together to clarify data and NFT rights and look into ways for content owners to license NFTs in the right way.
The plan indicates that a Web3 minister should be in charge of promoting international policies and cooperation. The Digital Agency of Japan will set up a place where local governments and business operators can go to get advice.
It also supports giving crypto visas to competent workers and making the startup visa system bigger.
Content Source: coindesk.com
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