Japan is positioning itself to be a global leader in cryptocurrency and Web3 technology through new government policies aimed at fostering growth in these sectors. This has raised concerns in rival South Korea that Japan may surpass it as a crypto powerhouse.
According to South Korea’s largest newspaper Chosun Ilbo, crypto firms in Seoul are worried about Japan’s proactive approach compared to increased regulation in South Korea following controversies. While South Korea is tightening crypto rules, Japan’s government under Prime Minister Fumio Kishida is deregulating parts of the crypto market.
Japan’s crypto regulations have been among the strictest globally, but self-regulating bodies are now relaxing token listing policies. The government is also reforming restrictive crypto tax laws that have prompted some Japanese companies to move overseas.
Chosun Ilbo stated: “While South Korea, once considered a powerhouse in virtual assets, is declining due to government regulations and a decline in investors, Japan is on the rise.”
Kishida spoke at a major Web3 conference hosted by CoinPost, Japan’s largest crypto media outlet. Other senior officials including the economy minister also participated, signaling strong government backing.
Kishida first revealed plans to support Web3 in 2022. Since then, the ruling Liberal Democratic Party has formed task forces pushing crypto tax reforms. Industry experts say South Korea must also ease regulations to stay competitive with proactive policies in Japan.
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