Japan's Minister of Economy, Trade and Industry, Takeru Saito, recently announced plans for startup-centric tax reforms aimed at enhancing the Web3 ecosystem.

These proposed tax reforms are designed to attract global businesses and developers to Japan's burgeoning Web3 industry.

During his keynote at the WebX2024 conference, Prime Minister Fumio Kishida emphasized Japan's ambition to lead in Web3 innovation.

Kishida reaffirmed strong government support for the blockchain and cryptocurrency sectors, highlighting recent regulatory reforms intended to nurture this ecosystem.

Key reforms include the elimination of taxes on unrealized crypto gains, which aims to alleviate financial pressures on startups and foster innovation.

New legislative changes now permit limited partnership firms to invest in and hold digital assets, which is expected to boost domestic investment in Web3 ventures.

Kishida's support for Web3 aligns with his broader 'New Capitalism' policy, which seeks to balance economic growth with social welfare through innovative technologies.

He articulated that 'New Capitalism' aims to create a society where innovation leads to tangible improvements in people's lives, positioning Web3 as a crucial component of this vision.

A recent survey revealed that 25% of investment managers in Japan have a positive outlook on crypto assets, indicating growing interest in the sector.

Despite regulatory challenges, institutional interest in Bitcoin appears to be increasing, with a June 2024 survey showing that 54% of investment managers are keen on digital assets in the next three years.

Kishida noted that sensible tax and legal reforms would facilitate fundraising and create new employment opportunities for Web3 startups.

The government aims to complement private sector developments to ensure Japan remains a leader in global technological innovation.