“We are rapidly approaching a future where cyberspace and physical space are closely intertwined.” That is the wording of a recently released Whitepaper 2024 from the Japanese government.
It was reportedly a combined meeting between the party’s Web3 project team and the party’s Digital Society Promotion Headquarters, yielding many proposals.
The first and foremost is the need to reclassify cryptocurrency earnings as capital gains rather than income.
According to local media, it also discusses a wide range of other subjects, such as security tokens, stablecoins, decentralized autonomous organizations (DAOs), non-fungible tokens (NFTs), and the taxation of crypto contributions.
The whitepaper’s stated goal of making Japan “the center of Web3” won over the hearts of the Japanese crypto community.
They also suggest heavily funding blockchain research so it can serve as a social infrastructure and integrate the Web3 ecosystem into national development plans.
For Japan, which has made great efforts to remain out of the crypto spotlight so far, the new Liberal Democratic Party’s stance as crypto friendly represents a shift in mentality.
In contrast to South Korea in 2018 and China in 2014, the Japanese government was cold towards the country after the stunning collapse of the Tokyo-based MT Gox.
However, this may be about to change as the JPY has experienced considerable resistance to the dollar over the last two years.
Trading firms in New York and Shanghai (before the government stepped in) likely used bitcoin for a variety of purposes, including foreign exchange.
The result is a group of countries that are falling behind the rest of the crypto industry, with Nigeria being one of the worst. Given the dire need for this financial hub in the area, this shift in perspective has the potential to elevate it to the forefront of global attention.
The authoritarian Chinese government let itself down by ceding a valuable asset—a massive cryptocurrency center in Shanghai that may compete with New York City.
Although they may try to reenter the market via Hong Kong, China is currently not involved in cryptocurrency.
The government of South Korea is not fond of cryptocurrency, nevertheless. This crypto economy is an island due to the government’s covert capital restrictions, which give them a Kimichi premium.
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