South Korean analysts and specialists say Japan wants to become a crypto and Web3 “powerhouse,” but others feel Seoul still has what it takes to overtake Tokyo.
Seoul-based cryptocurrency companies are disturbed by the proactive Web3-fostering measures of the Japanese government, according to Chosun Ilbo, the largest daily in South Korea.
A “crypto and Web3 El Dorado,” according to the newspaper, might result from these regulations in Japan, South Korea’s longtime political and economic competitor.
Tokyo seems to be moving in the other way from South Korea, which is aiming to strengthen its regulations on the industry in response to a number of issues.
Japan continues to have some of the strictest crypto rules in the whole world.
Prime Minister Fumio Kishida, though, seems eager to deregulate some market segments.
Japanese crypto exchange groups that self-regulate have started to loosen their tight token listing rules in recent months.
The government has also started to change the onerous crypto tax regulations that opponents claim have turned away Japanese enterprises.
The news source reported:
“Japan is growing, while South Korea, formerly seen as a powerhouse in virtual assets, is dropping as a result of government rules and a drop in investors. The government is taking the initiative by putting support measures [for the industry] into place and relaxing rules.
The Chosun Ilbo also mentioned Kishida’s choice to give a video lecture at the first WebX conference in Japan in July of this year.
CoinPost, the largest media platform in Japan with a focus on cryptocurrencies, organized the conference.
However, Kishida wasn’t the only prominent government figure to address the gathering.
Speaking at the occasion were the minister of the economy of the country and the head of the policy research council for the ruling Liberal Democratic Party.
Government of Japan Supports Crypto, Web3 Sectors; Will South Korea Follow?
At a meeting with investors in London in May 2022, Kishida first discussed his Web3 plans.
He made other Web3 commitments the following month, with a “basic policies” framework due in November 2022.
Since then, the LDP has established taskforces for Web3 and NFT, which started promoting tax reform in December of last year.
Chosun, however, attributed the origins of the Web3 strategy to a cabinet meeting in 2021, when ministers decided to “provide intensive support to Web3” businesses in order to foster digital transformation and the development of startups.
The media outlet said that stablecoin issuance legislation and tax changes in Japan had been expedited.
In June, stablecoin issuance and distribution became legalized for Japanese banks and trust companies.
South Korean businesses are still waiting for the stablecoin to be approved.
Foreign businesses involved in cryptoassets are now “jumping to” conduct business in Japan as a result, the site claimed.
The site mentioned two of these companies: the massive cryptocurrency exchange Binance and the South Korean gaming behemoth Netmarble.
In August 2023, Binance successfully entered the Japanese crypto market sector as a result of an M&A agreement with a local firm.
The “government and politicians” of South Korea, according to experts, need to “pay more attention to fostering the domestic market and easing regulations.”
Unnamed South Korean cryptocurrency industry representative:
“Japan is moving quickly, with its government and politicians cooperating, while South Korea is taking its time and overhauling its cryptocurrency system.”
As a result, the official said:
In terms of cultural substance, South Korea is more competitive than Japan because to the success of K-pop and Korean dramas. We will quickly retake the lead in the Web 3 industry if the government encourages the speedy adoption of laws, support, and deregulation.
Japanese companies like Mizuno and Casio have recently made announcements about their intentions to enter the Web3 and NFT markets.
