FSA asks for tax reforms
The Financial Services Agency has released its requests for tax reforms for the coming fiscal year 2024. Unsurprisingly, a big focus of their proposition is cryptocurrencies, in addition to realizing a nation focused on asset management and becoming a financial center of the world and a hub in Asia.
For crypto in particular, their request is supported by the Ministry of Economy, Trade and Industry and aimed at addressing the year-end taxation for third-party held cryptocurrencies”. Businesses that hold tokens from other issuers than themselves have to tax them regardless of whether they realize profits or not. Not even the US taxes paper gains, making Japan an unattractive location for token investors and crypto entrepreneurs in general.
By changing the tax, the FSA hopes to promote web3 and blockchain and prevent entrepreneurs and funds from setting up store in Singapore instead. Most lawmakers are unlikely to raise any objections, so maybe next year already, Japan’s taxes will be a little less daunting.
Takeaway: A government actively trying to foster a web3 sector cannot afford to stifle it with unreasonable taxation. Many promising Fintech startups have already moved away, which doesn’t align with the idea of becoming a hub.
MUFJ Trust and Ginco jointly develop Crypto Trust Services
Mitsubishi UFJ Trust is taking its first foray into offering crypto custody services in collaboration with GInco, a crypto-native enterprise. Together, they aim to work on an offering that will enable institutional investors to invest in tokens and foster a favorable environment for companies to issue tokens.
Throughout the collaboration, MUFJ trust will leverage its expertise in financial services to build a trustee service and offer secure custody for crypto, whereas Ginco is contributing its wallet, which is built to cater to enterprise needs.
The Crypto Trust Service Scheme will facilitate two categories of investing: one where token issuers and beneficiaries are the same and another category where institutional investors bring the tokens they hold into the trust to be safeguarded.
Outside of Ginco and MUFJ Trust, a total of 9 companies are planning to participate in the scheme. It’s not the first time MUFJ is explored web3. Earlier this year, they partnered with NTT Data to build standardized infrastructure for digital assets, and they also have built a stablecoin issuance platform.
Takeaway: While in other countries, regulatory constraints have kept big banks from building their own blockchain-based solutions, Japanese Megabanks are exploring the intersection of blockchain and traditional finance - all in adherence with KYC, AML, and other compliance frameworks.
PDC’s loyalty program combines digital signage and NFTs
PDC has announced a loyalty program aimed at commercial facilities that combine digital signage and NFTs. Digital signage is a segment of electronic signage and describes a network of electronic displays used to distribute information or promote products.
So far, PDC is better known for its creation of the OneGate digital media management platform, which is backed by Panasonic, NTT East Japan, and others. Now, with the loyalty program, the team aims to use web3 to enhance visitors' experience. PDC is joined by ProofX and PlaySync in the development efforts.
Once created, their new loyalty program will allow companies to create their own NFT-based stamp rallies and events using screens displayed in their facilities. For example, a shopping mall could display different QR codes on all their floors that visitors can collect to claim a discount in the lunch restaurant.
It’s unclear which blockchain will be used to facilitate the NFT issuance. However, PlayThink has recently launched an Avalanche Subnet, so some speculate it could be built on top of that.
Takeaway: Considering how many screens there are in big Japanese cities, it was just a question of time until someone figured out how to leverage them for business. People are already quite used to scanning QR codes from screens - adding NFTs into the mix enables companies to learn more about their consumers and offer more custom journeys.
In other News 📰
- Binance has published its Japan strategy.
- Idol 3.0, a new idol group for the web3 era, is now auditioning for members.
- NEAR and Render Token are making their Japan debut with exchange listings
Events 📅
- Sept 4th - Nov 24th: Global Web3 Hackathon sponsored by Mazda and Mitsubishi Estate
- Sept 7th: Tech Meets Business by Rekaizen, an event exploring the intersection of enterprise and NFTs
- Sept 9th: An introduction to Web3by the Ehime Web3 College for those new in the space
- Sept 13th: Shibya Web3 Lab brings together web3 creators and shares all the alpha on running your own project
- Sept 19th: Dcentral Tokyo, the successful conference series, is opening its doors for the first time in Tokyo
Japan Fact 🗾
If you watched Totoro and now want to live like Mei and Co. in a house in the Japanese countryside, it might be more affordable than you think. Currently, there are over 8.4 million Akiya (abandoned houses) in Japan, some of which are selling for as little as $500.
