Minister Muto warns of international competition, targeting local revitalization through animation.
At the WebX 2025 conference held in Tokyo from August 25 to 26, following Prime Minister Ishiba Shigeru's emphasis on a century-long transition period, Minister of Economy, Trade and Industry Muto Yōji expressed a strong sense of crisis regarding international competition in his speech.
He pointed out that 'countries around the world are boldly advancing their investment attraction policies for Web3 and cryptocurrencies at an unprecedented speed,' particularly mentioning that the United States has passed related bills and had them signed immediately by the president, believing this demonstrates 'a strong will at the national level,' emphasizing that Japan 'must not fall behind in the global trend.'
Minister Muto positions Web3 as a key tool to connect Japan's advantageous industries, clearly identifying five key sectors: animation, comics, art, sports, and local revitalization. He emphasized the hope to promote the value of small and medium-sized enterprises and creators domestically and internationally through Web3 technology, with inter-industry collaboration being a focal point of policy promotion.
To this end, the Ministry of Economy, Trade and Industry announced three specific measures: tax reform, legislative amendments to allow funding for Web3 startups, and creating a business environment that can unleash the potential of Web3.
Source: (CoinDesk Japan) Japan's Minister of Economy, Trade and Industry, Muto Yōji
Finance Minister Kato first detailed the stablecoin policy, acknowledging the investment value of cryptocurrencies.
In his keynote speech, Finance Minister Kato Katsunobu detailed the current state of Japan's Web3 development for the first time in an official setting as the Minister responsible for finance. He revealed that the number of cryptocurrency accounts in Japan has exceeded 12 million, and the cumulative amount of securities token issuance has surpassed 170 billion yen. Notably, Minister Kato elaborated on the main issuance models for yen stablecoins and specifically described their application scenarios, including 'internal cash management within corporate groups and the efficiency of inter-company payments for international trade settlements.'
Source: (CoinDesk Japan) Japan's Finance Minister Kato Katsunobu
From an investment perspective, Minister Kato made a groundbreaking statement, clearly stating, 'Although cryptocurrencies carry high volatility risks, by establishing an appropriate investment environment, they can become one of the options for diversified investments.'
This is the first time Japan's Finance Minister has publicly acknowledged the role of cryptocurrencies in investment portfolios. He emphasized that considering the continuous growth of the user base, the government will focus on creating a sound cryptocurrency trading environment and mentioned that the 'Reiwa Year 7 ruling party tax reform outline' at the end of the year will review the taxation system for cryptocurrencies.
Regulatory loosening and tax reform are progressing together as Japan strives for leadership in Web3.
In response to the challenge posed by the United States incorporating cryptocurrencies into the core of its global economic strategy, Minister Kato specifically explained that Japan is promoting significant institutional reforms. The government is currently reviewing the regulation of cryptocurrencies, shifting from the existing 'Payment Services Act' framework to the 'Financial Instruments and Exchange Act' system to establish a more comprehensive legal environment. Regarding the tax system, Japan's Financial Services Agency has proposed a significant recommendation to the government to change cryptocurrency taxation to a fixed tax rate. Under the current system, cryptocurrency income is classified as miscellaneous income, with a tax rate ranging from 15% to 56%. The new proposal suggests applying a separate tax similar to stocks, with a unified fixed tax rate of approximately 20.315%.
Source: (CoinDesk Japan) Japan's Finance Minister Kato Katsunobu explains the subsequent tax reform mechanism.
The adoption of blockchain technology by Japanese companies is also clearly accelerating. The SBI Group recently signed cooperation agreements with internationally renowned companies such as Chainlink, Circle, Ripple, and Startale, actively developing cryptocurrency tools for Asian financial institutions. The Financial Services Agency is also preparing to approve the issuance of yen stablecoins as early as this fall, reflecting the urgency of policy promotion. Minister Kato emphasized in his speech that in the face of 'digital assets becoming the core of the United States' global economic strategy,' Japan must accelerate its pace to respond to this international competition.
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The first yen stablecoin is about to debut, and Japan's Financial Services Agency is nodding its approval; JPYC is expected to be approved this month.
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The article 'WebX2025: Japan Must Not Fall Behind! Minister: Comprehensive Promotion of Web3 from Animation to Tax Reform' was first published in 'Crypto City.'
