Japanese Web 3 lawmaker urged to simplify crypto regulation

Once known as a hub of the cryptoverse, especially in the first decade of Bitcoin’s inception, Japan began putting regulations around the cryptosphere in 2018. Not eager to stifle innovation in the emerging sector, the country’s authorities imposed strict trading laws on crypto. The heist of 850,000 Bitcoins worth $500 million on Japan’s Coincheck in 2018 was one of many reasons behind this move.

In recent times, government policy makers have made a U-turn and have taken several initiatives to boost the country’s economic growth and to support and nurture local blockchain startups. To encourage Japanese residents to invest their savings in the country’s Web3 companies and stocks, the FSA, the Financial Service Agency of Japan, has announced tax cut for crypto investors in August this year.

The legislator encourages the government to introduce more relaxed rules

Speaking about the government’s move to implement refined rules for crypto exchanges, Masaaki Taira, head of the Web 3 project of Japan’s ruling Liberal Democratic Party, added in an interview that “it’s still not enough.” Taira said the government needs to work on relaxing the rules significantly to rejuvenate the country’s crypto market.

The Japan Virtual and Crypto assets Exchange Association (JVCEA), the country’s self-regulatory body that oversees the crypto exchanges within its border, was reported to focus on easing the tedious process of screening tokens before they are listed on crypto exchanges.

Masaaki Taaira, popularly known as the mastermind behind virtual currency policy, published a cryptosphere whitepaper in March with his team.

It is also widely known that the ruling party lawmaker is behind persuading the country’s premier Fumio Kishida to include “growing the web3 market” as a priority in his term’s annual policy released in June.

The white paper implies the importance of the rapid emergence of the Web 3.0 era. For example, the use of NFTs (non-fungible tokens) can increase the country’s economy enormously, already the third largest economic player in the world. Taira’s team also raised concerns in the white paper about the slow progress in the industry. It says:

The arrival of the Web 3.0 era is a great opportunity for Japan. But if we continue as we are now, we will surely miss the boat.

Another white paper to come on Japanese crypto regulation

Taira, the former Prime Minister in the Cabinet Office, further revealed that his team is working on publishing the second white paper. It will focus on improving the token listing, accounting guidelines, crypto tax and a comprehensive regulatory framework for the DOAs (decentralized autonomous organizations), a type of establishment for the cryptoverse. Hoping to deliver his interim report by the end of the year, he believes that “Momentum is building.”

Masaaki Taira’s recent comments on the latest shift in crypto policy suggest that Japan is gradually increasing its efforts to energize the crypto atmosphere nearby. The rumor has already attracted the giant digital currency exchange, Binance, as an applicant lawful clearance to return to the regime after four years.

Besides Binance, Amber Group is another foreign cryptocurrency exchange that recently acquired the DeCurret exchange to swim into the Japanese crypto waters.

Featured image from Pixabay and chart from TradingView.com