Japan Embracing Web3 Through Policies

Japan’s Web3 strategy is likely to influence other nations’ approaches to embracing the digital revolution.

Corporate Partnership To Expand Metaverse Economic Zone

Japan is set to embrace Web3 technology with the backing of major companies like Fujitsu and Mitsubishi. In a significant partnership, these companies are joining forces to create the necessary infrastructure for an open metaverse and to support Japan’s Web3 strategy.

Fujitsu, along with nine other firms, has revealed plans to establish an interoperable metaverse structure known as RYUGUKOKU (TBD). The primary objective of this structure is to expand the Japan Metaverse Economic Zone, enabling a seamless virtual world experience.

Establishing An Interoperable Metaverse 

The scope of this initiative goes beyond just entertainment and gaming. It also aims to provide a framework for corporations to leverage Web3 marketing effectively. As part of the project, prominent players such as automobile manufacturer Mitsubishi and global bank Mizuho have also stepped in, highlighting the broad support for the country’s Web3 ambitions.

The Japanese government has been actively promoting the adoption of emerging technologies, and Web3 is no exception. By embracing decentralized systems, blockchain, and virtual reality, Japan seeks to position itself at the forefront of technological innovation.

The concept of an open metaverse holds promise in transforming various industries, from entertainment and gaming to commerce and finance. As the world moves towards a more interconnected and digitized future, creating a virtual space where users can interact seamlessly becomes increasingly vital.

Japan’s Revised Web3 Policy

The country has already published a whitepaper earlier this year, recommending widespread Web3 adoption. On top of that, the National Tax Agency (NTA) has revised its corporate tax rules to provide a 30% tax exemption to companies issuing cryptocurrencies. 

These web3-friendly policies have raised some questions as the company had tightened regulations in the wake of major hacks like Mt. Gox and Coincheck. Initially poised to become a crypto capital, Japan’s regulatory landscape changed drastically after the hacks. It was extremely challenging even to list new tokens on Japanese crypto exchanges. 

However, the nation took decisive steps to enhance security measures, requiring the separation of customer and exchange assets, with most exchange assets stored in cold wallets. As a result, when FTX faced a crisis, Japan’s regulations proved effective, ensuring the potential return of Japanese customer assets. These lessons from past emergencies have empowered Japan’s regulatory approach, making it more knowledgeable and resilient in crypto.

Experts predict that the global Web3 market will witness exponential growth in the coming years, and Japan intends to position itself strategically to harness its benefits fully. As the infrastructure takes shape and the metaverse expands, Japan’s Web3 strategy is likely to influence other nations’ approaches to embracing the digital revolution.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.