Blockchain and crypto leaders came together in DAO Tokyo as Japan ramps up adoption

Japan’s regulatory and policy environment for crypto and Web3 technologies has evolved rapidly in recent years. The Financial Services Agency of Japan reported in December 2022 that it planned to lift restrictions on foreign-issued stablecoins on Japanese exchanges, which could have significant implications for the decentralized finance (DeFi) ecosystem in Japan and the wider region.

Furthermore, the Japanese government’s announcement that it plans to invest in non-fungible tokens (NFTs) and the metaverse highlights the growing recognition of the potential of Web3 technologies to transform various sectors of society and the economy.

Against the backdrop of these significant advances for blockchain and cryptocurrency, industry insiders from around the world gathered at the historic Kanda Myojin Shrine in Tokyo for DAO Tokyo 2023, a conference focused on decentralized autonomous organizations (DAOs) and organized by Fracton Ventures.

The lineup of keynote speakers spans various sectors of the DAO ecosystem, including ENS DAO, which manages the Ethereum Name Service; Shibuya, a decentralized social media platform; dYdX Foundation, an independent foundation dedicated to decentralized exchange dYdX; and more.

Traditions meet decentralized technology

Speakers discussed the importance of DAOs as a new paradigm for organizational governance and decision-making, and their potential to transform the art world, promote decentralized creativity and empower local businesses and citizens.

DAO Tokyo featured a series of panel discussions where participants discussed the importance of creating decentralized systems that prioritize user privacy and control, and the potential for Web3 to enable new forms of value creation and revenue generation.

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The panelists also discussed the potential of blockchain technology to enable new forms of trust and collaboration, particularly in industries such as finance and supply chain management. They highlighted the potential for DeFi to transform the financial services industry and the challenges of regulatory compliance.

In addition to the insightful panel discussions and keynotes, the DAO Tokyo conference also featured a number of other activities that highlighted the potential of decentralized technology, including a campaign to create Kanda Myojin augmented reality NFTs designed to commemorate the conference.

ENS DAO created and distributed “ENS cards” to around 120 pre-registered event participants. These NFC-enabled “business cards” for the Web3 era acted as NFT badges proving that attendees had met, a feature activated by tapping the card on the smartphone.

It was interesting to see how at this global event – with 90% of the audience from outside Japan – the only people exchanging physical business cards were Japanese, symbolizing how the latest trends arrive in Japan later than the rest of the globe and highlighting how Japanese society respects their traditions.

When asked why he wanted to participate in the event, Makoto Inoue, a core developer at Ethereum Name Service, noted that ENS was impressed by the vitality of the community at the previous DAO NYC event in New York and wanted to contribute to the success of the first full-fledged The DAO event in Asia by sponsoring it.

He also highlighted the potential of DAOs to manage projects like DeFi and NFTs, saying he hoped more tools would emerge to make participation easier. Makoto noted that the cryptocurrency industry is going through a winter season, but this is an opportunity for new projects to emerge.

Jocelyn Chang, Asia-Pacific Growth Manager at MakerDAO, told Cointelegraph, “Asia, with many innovative projects and initiatives in the space, has a unique opportunity to play a leading role in shaping the future of DAOs. Attending a DAO conference in Asia is an important step to promote adoption, collaboration, diversity and innovation in the development of DAOs in the region.”

Patrick Rawson, co-founder of Curve Labs, told Cointelegraph that the dominance of Western DAOs is going to change as Asia gains momentum in the Web3 space. He said Asia would become increasingly involved in the Web3 space as Western jurisdictions such as the United States face regulatory challenges and Asian developers become increasingly involved in the blockchain and crypto industries.

What will be next?

DAO Tokyo was a reminder of the energy and creativity driving the Web3 industry forward, and of Japan’s position at the forefront of this new frontier. With a growing ecosystem of blockchain startups, investors and enthusiasts, Japan is poised to become a major player in the Web3 world.

The Japan Business Federation – also known as Keidanren – recently put forward a proposal that aims to make Japan a leading Web3 advanced country by 2025 by addressing various issues, such as decentralized data ownership, governance transformation and innovation in various industries.

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Keidanren listed three areas Japan could address to become an advanced Web3 country: appropriate tax measures for token ownership, revision of the Limited Liability Investment Company Law, and appropriate operation of the Japan Virtual Currency Exchange Association audit. The association also proposed measures for NFTs, DAOs and the metaverse.

Japan will host several major Web3-focused conferences this summer, with Prime Minister Fumio Kishida already confirmed as a speaker at some.