Japan crypto Market Slowdown to Continue?
The chairman of the Japan Cryptocurrency Exchange Association and founder of the SBI-owned BITPOINT crypto exchange, Genki Oda, expressed concerns about Japan’s diminishing share of the global cryptocurrency market. Speaking at the WebX2024 summit, Oda highlighted that the Japanese yen's trading volume in the global market has significantly decreased from its previous dominance. He mentioned that Japan was once a major player in the crypto market but now holds only a small percentage of the global share.
Oda emphasized that Japan's presence in the market is fading, indicating a downward trend in the country's influence on the global cryptocurrency scene. This shift reflects a significant change from a time when Japanese yen accounted for about half of global bitcoin trading.
Lawmakers Defend Government Policies
The session at the WebX2024 summit also saw the participation of key Liberal Democratic Party (LDP) lawmakers, Masaaki Taira and Takao Ochi. Oda directed questions to the lawmakers regarding the government's strategy in response to Japan's reduced impact on the global crypto landscape.
Taira responded by highlighting the uncertainty surrounding the upcoming elections in both Japan and the United States. The election outcomes in these countries will likely influence the approach each government takes towards integrating cryptoassets into their policies.
New PM to Shape crypto Policy for Japan
The pending departure of Prime Minister Fumio Kishida and the subsequent selection of a new leader in Japan will play a crucial role in shaping the country's stance on cryptocurrency. Kishida's successor will determine if the pro-web3 policies initiated during his tenure will continue.
The potential new Prime Minister's perspectives on web3 technologies, including the utilization of non-fungible tokens (NFTs) for economic development, will affect Japan's position in the evolving crypto landscape. The government's approach to crypto tax reforms, particularly in relation to capital gains levy on trading profits, will also influence the country's attractiveness to crypto businesses.
Japanese People Are ‘Not Talking Much About crypto Anymore’
The strict tax regulations surrounding crypto in Japan have drawn criticism from political opponents and industry leaders. Concerns have been raised about the impact of these tax rules on the competitiveness of Japanese web3-related businesses globally. Reports indicate that top crypto and blockchain talents in Japan are considering relocation to escape the burdensome taxes and regulatory environment.
Furthermore, the general sentiment among Japanese residents has shifted, with discussions about crypto and bitcoin noticeably decreasing in everyday conversations. This change in perception reflects the evolving landscape of cryptocurrency adoption and regulation in Japan.
