Japan‘s Prime Minister, Fumio Kishida, has said that the government will take steps to boost Web3 services, particularly those involving nonfungible tokens (NFTs), and the Metaverse.

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In a speech to Japan’s National Diet on October 3, Kishida stated that the government’s investment in the country’s digital transformation already includes providing NFTs to local governments that use digital technology to solve problems in their individual jurisdictions. He also mentioned digitising national identification cards. Furthermore, the prime minister stated that the cabinet will “promote efforts to expand the usage of Web 3.0 services that use the metaverse and NFTs.”

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Kishida’s government has formed a Web3 policy office under the Ministry of Economy, Trade, and Industry (METI) to develop policies for the country’s steady blockchain growth.

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In April, a task group established by Kishida’s Liberal Democratic Party and chaired by politician Akihisa Shiozaki published an “NFT White Paper” referring to Web3 as the “new frontier of the digital economy” and outlining objectives to develop the national strategy on Web3.

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METI is also reportedly considering a plan to grant tax breaks to Japanese crypto firms in order to attract them to stay in the country and help fuel the country’s expanding Web3 ecosystem.

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Kishida stated that Japan’s technical investments will include developing and manufacturing semiconductors in collaboration with the United States, as well as working on technology-related regulatory reform. 

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Cryptocurrency users in Japan have witnessed a number of changes during Kishida’s term in power, including Mt. Gox going forward with reimbursement processes after years of legal hurdles and the reinstatement of cryptocurrency ATMs in the nation. In August, the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association, two of the country’s crypto advocacy groups, proposed a 20% separate tax on crypto gains for private investors — many already face a crypto tax rate of up to 55%.