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The founder of SBI-owned BITPOINT, Genki Oda, has voiced concerns regarding Japan’s declining presence in the global cryptocurrency market. As the chairman of the Japan Cryptocurrency Exchange Association and Executive Vice President at SBI, Oda’s insights carry weight in the industry. His remarks were made during the recent WebX2024 summit, as reported by the Japanese media outlet CoinPost on September 3.
Japan’s Crypto Market Decline
During the summit, Oda reflected on a time when Japan accounted for approximately 50% of global Bitcoin (BTC) transactions, primarily conducted in Japanese yen. He remarked that from 2017 to 2018, Japan was a major hub for cryptocurrency activity. However, by 2024, Oda expressed disappointment that the trading volume of the Japanese yen now represents merely a tiny fragment of the worldwide market.
Oda stated, “Japan’s presence in the market is fading,” indicating a concerning trend that could have long-lasting effects on the nation’s cryptocurrency ecosystem. To illustrate his point, he referred to trading volumes on the Japanese crypto exchange bitFlyer over the past year, showcasing a significant decrease in activity.
Government Response to the Declining Influence
The panel also included prominent members of Japan’s ruling party, the Liberal Democratic Party (LDP), such as Masaaki Taira and Takao Ochi. Oda challenged these lawmakers on the Japanese government’s strategies to combat the nation’s shrinking role in the global crypto landscape.
He referenced former President Donald Trump’s recent announcement about integrating cryptocurrencies into his policies and questioned how Japan plans to respond. Taira suggested that Japan’s approach would largely depend on the outcomes of the upcoming elections, both in Japan and the United States.
Future of Japan’s Crypto Policies
Taira’s comments came amidst the political backdrop of Prime Minister Fumio Kishida’s impending resignation. Kishida has been a proponent of pro-web3 initiatives, emphasizing the potential for technologies such as non-fungible tokens (NFTs) to drive economic growth. However, there is uncertainty about whether his successor will maintain this forward-looking approach.
The lawmakers also discussed the government’s previous actions regarding crypto tax reform. Tokyo has adjusted its tax policies for crypto-holding firms and faces calls to simplify taxation by replacing the sliding scale income tax on crypto earnings with a flat 20% capital gains tax.
Concerns Among the Public
Despite supposed reforms, there remains skepticism about the effectiveness of Japan’s tax regulations. Current policies are perceived as a hinderance to the competitiveness of Japanese web3 ventures. Industry experts and political critics argue that stringent tax laws are driving local crypto talent abroad. Crypto enthusiast Hiroko Nozue noted, “People here generally don’t talk about crypto or Bitcoin as much as they used to,” highlighting a waning interest in the sector among the Japanese populace.
This growing apathy raises alarms among stakeholders who fear that Japan’s cryptocurrency industry may struggle to recover its former influence without significant policy shift and public engagement.
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