Japan's Embrace of Web3 Uncertain as Ruling Party Under Threat
Japan's Prime Minister Fumio Kishida and the ruling Liberal Democratic Party (LDP) have been leading the country's Web3 strategy and crypto sector regulations. However, a major corruption scandal threatens their future, potentially impacting Japan's crypto progress. The LDP, in power for nearly 70 years, faces by-elections and a party leadership election in which Kishida might be replaced. In 2023, Japan regulated stablecoins, viewing the crypto market as an opportunity for economic growth. Kishida's cabinet has a Web3 project team that released a white paper on the national non-fungible token (NFT) and decentralized autonomous organization (DAO) strategy. The LDP is proposing corporate tax cuts and allowing venture capital firms to hold crypto. Over 160 active Web3 projects have resulted from the LDP’s Web3 white paper. Kishida has promised disciplinary action against party members involved in a kickback scandal.
