Japan’s New Prime Minister Reshapes Web3 and Crypto Policy Units

Japan’s new Prime Minister, Shigeru Ishiba, announced the reorganization of units tasked with formulating the party’s Web3 and cryptocurrency politics. Japan’s continued push to foster the growth of blockchain technology and digital innovation led to this move. These moves came after critical decisions recently spearheaded by Digital Minister Masaaki Taira, who has publicly supported Web3 and crypto within the government.

At the forum on November 27, 2024, Taira made major announcements, including the decision to disband the current Web3 Project Team (PT) formation and set up a wholly dedicated unit. This new initiative will be led by Akihisa Shiozaki, the former secretary general of Web3 PT, and will run as part of the Liberal Democratic Party’s (LDP) Digital Society Promotion Department, intent on expediting Japan’s transition toward being a digital country.

Japan’s New Digital Department Focuses on Web3

This reorganization is another sign of the government’s continuing commitment to encouraging Web3 and crypto businesses. The government has confirmed it will not stop supporting digital innovation, even after reshuffling the police units. Taira’s announcement comes on the back of the hot ticket of crypto and blockchain as drivers of economic growth.

Shigeru Ishiba has backed pro-Web3 policies and said he favours carrying forward the momentum established by former Prime Minister Fumio Kishida. Kishida had previously championed Web3 — blockchain and NFTs as hugely important economic forces, and his ideas still sway LDP adherents. Ishiba’s statements align with this continuity in Japan’s digital strategy.

As such, the new Digital Society Promotion department will likely be the new focal point for Web3 policy, but its scope remains in question. Shiozaki’s continued involvement will be a welcome breath of fresh air for crypto advocates who advocate tax reform and DeFi. The Web3 PT had, under Shiozaki’s leadership, urged Japan to change its crypto tax laws and its entire policy framework, which she did not appear to favour.

Focus on Crypto Regulation and Tax Reform

The government’s most important task is devising a new crypto taxation system. Masaaki Taira also wants to reform Japan’s crypto tax laws to grow the business and attract international investment. In both tactics, Taira, who played a key role in launching Japan’s crypto regulations, has emphasized tax reform.

While working at Web3 PT, Taira played a big role in key legislation that later regulated the cryptocurrency market. As a key figure helping shape Japan’s future crypto policy, it’s no surprise he’s experienced in this area. As the head of the new Digital Society Promotion department, Taira hopes to continue pushing for necessary adjustments so that Japan can continue competing in the global crypto market.

Akihisa Shiozaki now heads the new policy unit, has also focused on regulatory clarity. Under his leadership, the Web3 PT promoted such tax reforms, published white papers on that topic, and urged increased institutional support for decentralized autonomous organizations (DAOs). His continued involvement in promoting Web3 and crypto is a high priority for Japan’s political leadership, which is evident from his continued role.

Web3 and Blockchain in Local Revitalization

Recently, Ishiba’s self-financed manifesto cited using blockchain technology and NFTs to strengthen regional development. One of the plan’s goals is to help revitalize local economies through digital assets, such as NFTs, to add value to local products. Ishiba says the blockchain can help local businesses access global food, tourism, and regional crafts markets.

The proposed use of NFTs and blockchain in local development makes sense, given that discussions around adopting decentralized technologies are ongoing. His focus on digital solutions to local revitalization, a trend in Japan, represents a wide strategy to use innovation to fix regional economic problems. Blockchain integration is meant to provide a global presence to traditional industries and preserve cultural heritage.

Aim 1, with victory on October 27, 2024, reaffirmed the LDP’s commitment to these goals. The party of Ishiba has held power over Japan’s political landscape since 1955. This stability helps us build out Web3 policies and digital infrastructure nationwide.