Japan’s regulatory and political environment for crypto and Web3 technologies has been evolving rapidly over the past several years. The Financial Services Agency of Japan reported in December 2022 it planned to lift restrictions on foreign-issued stablecoins in Japanese exchanges, which could have significant implications for the decentralized finance (DeFi) ecosystem in Japan and the wider region.
Furthermore, the Japanese government’s announcement that it plans to invest in nonfungible tokens (NFTs) and the metaverse highlights the increasing recognition of the potential of Web3 technologies to transform various sectors of society and the economy.