The founder of the SBI-owned BITPOINT crypto exchange has expressed concern over Japan’s dwindling share of the global crypto market. Genki Oda, also the Chairman of the Japan Cryptocurrency Exchange Association, highlighted the decline in the country’s presence in global crypto trading. During the WebX2024 summit, Oda noted that while Japan was a major player in the crypto market in 2017-2018, its share has significantly decreased by 2024. Oda’s remarks indicate that Japan’s influence in the crypto space is diminishing, with its trading volume in Japanese yen now only accounting for a small fraction of the global market.
At the session, Oda was joined by two key Liberal Democratic Party (LDP) lawmakers, Masaaki Taira and Takao Ochi. The LDP is Japan’s ruling political party, and the lawmakers discussed the government’s response to the country’s decreasing role in the global crypto scene. Oda specifically inquired about the government’s stance on crypto assets, drawing a parallel with former US President Donald Trump’s supportive comments on Bitcoin. Taira noted that the upcoming elections in Japan and the USA would likely impact government policies regarding crypto assets, highlighting the uncertainty surrounding the future leadership and its approach to digital assets.
In the aftermath of Prime Minister Fumio Kishida’s announcement to step down in September, Taira emphasized that the next Prime Minister would heavily influence Japan’s crypto policies. Kishida has been supportive of web3 initiatives during his term, but it remains to be seen if his successor will continue his pro-crypto stance. The lawmakers discussed the government’s efforts in crypto taxation reform, noting changes in the taxation of crypto-holding companies. However, concerns persist over the impact of Japan’s strict tax regulations on the international competitiveness of Japanese web3 businesses, prompting criticism from political opponents and industry leaders.
Despite some efforts to improve the regulatory environment for crypto in Japan, there are ongoing concerns about the exodus of top talents from the industry due to restrictive tax policies. Industry insiders have raised alarm about the potential decline in Japan’s competitiveness in the global crypto market if the tax rules for individuals are not revised. The reluctance of the Japanese government to address these issues could further exacerbate the country’s diminishing presence in the crypto space. As a result, there is a growing sentiment among the Japanese population that crypto and Bitcoin are no longer as prominent topics of discussion as they once were, signaling a potential shift in public sentiment towards digital assets.
