The surging adoption of digital assets worldwide has changed the stances over cryptocurrencies resulting in the structuring of favoral rules to foster adoption. In a recent development, the government of Japan projected its intentions to support cryptocurrencies through the formation of Specialized units for Web3 in the nation.
According to data available, Japan PM Shigeru Ishiba’s ruling party has changed its Web3 leadership, which mirrors a renewed commitment to foster the surging adoption of cryptocurrencies globally.
It is worth noting that the Liberal Democratic Party of Japan has announced the formation of a new Web3 unit under the Digital Society Promotion Department.
The newly formed unit will replace the current team for Web3, and the role of the head will be carried out by Akihisa Shiozaki, the former secretary-general of the Web3 team.
The move seems to be influenced by the departure of former Prime Minister Fumio Kishida and his aim to strengthen Web3. A person aware of the event notes that LDP has established this unit as a part of its agenda to support Web3, resulting in improved regulations for digital assets and companies.
Analysts predict that the adoption and number of holders of crypto in Japan are expected to grow at an appreciable pace in the coming times. The nation is globally known for its contribution to the development and advancement of hundreds of technologies.
Japan has a soft eye for cryptocurrencies!
Japan seems to be working closely on the rules and regulations concerning cryptocurrencies and other digital assets in the past few months, especially after the change in the prime minister after the historical victory of the LDP party.
The Japanese government has yet to reveal specific details regarding the unit’s roles and responsibilities. However, its primary objective is clear: to establish Japan as a global leader in the Web3 and digital asset industry.
Japan has long been a frontrunner in cryptocurrency regulation, having introduced laws in 2018 that permitted citizens to participate in crypto markets through regulated exchanges.
This development aligns with growing global interest in Japan’s broader economic strategies. A recent Bloomberg report emphasized international attention on Japan’s $165 billion property market, further solidifying the nation’s appeal as a financial hub.
In response to recognizing significant risks to its citizens, the Japanese cabinet convened to discuss strategies and policies. These included improving investigative capabilities in crypto-related cases, preventing unauthorized bank withdrawals, and creating a robust legal framework to facilitate the seizure and recovery of assets.
The market has been buzzing with debates surrounding the potential approval of Bitcoin spot ETFs by Japanese regulators. During a media interaction, a senior official from a leading asset management firm expressed doubts about Japan’s readiness to approve such financial products.
Oki Shiozawa, Director of Investment at Sumitomo Mitsui Trust Asset Management, shared his perspective with the Financial Times.
He stated, “I currently cannot imagine a scenario where the authorities could be successfully convinced. While I’m not suggesting that crypto-related ETFs are entirely off the table, Japan’s Financial Services Agency, which oversees financial product approvals, tends to adopt a cautious approach.”
