Japan’s New Prime Minister Reorganizes Web3, Crypto Policy Units

Japanese Prime Minister Shigeru Ishiba has reorganized his party’s web3 and crypto policy-making units.

Japan’s CoinPost reported that Masaaki Taira, the new Digital Minister, made a series of related announcements at a forum on November 27.

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Taira explained that the ruling Liberal Democratic Party will dissolve the existing web3 Project Team (PT), and will instead create a dedicated unit in the party’s Digital Society Promotion department.

Akihisa Shiozaki, the former Secretary-General of the web3 PT, will lead the new unit.

The government indicated that it has no intention of stopping the “promotion” of web3-related business.

The PT was the brainchild of Former Prime Minister Fumio Kishida, who stepped down as PM and the head of the LDP earlier this year.

Kishida envisaged web3 and crypto as potential growth engines for the Japanese economy, and promoted the adoption of blockchain technology and NFTs.

Ishiba has indicated that he also favors pro-web3 policies, and Taira – also the former head of the web3 PT – has also spoken about the need to reform Japan’s crypto tax laws.

#PMinAction: On November 26, 2024, Prime Minister Ishiba held the 14th meeting of the Council on Economic and Fiscal Policy in FY2024 at the Prime Minister's Office.https://t.co/q4w2MyKYtA

— PM's Office of Japan (@JPN_PMO) November 27, 2024

Minister Favors Tax Reform

Taira also pioneered the launch of crypto regulations, and worked on key legislation during the Kishida administration.

CoinPost noted that Shiozaki’s X (Twitter) profile has been updated since the reshuffle, but noted that references to “web3 policy” had not been removed.

The government has yet to outline the full responsibilities of the Digital Society Promotion department.

However, crypto advocates will likely welcome Shiozaki’s continued involvement. Under Shiozaki’s leadership, the PT published white papers calling for “immediate” tax reform.

He has also focused on promoting Japanese Decentralized Autonomous Organizations (DAOs), with an emphasis on fostering institutional support.

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The potential for unrealized gains stems from an accounting quirk ⤵ https://t.co/av1VkNepn7

— Bloomberg (@business) November 28, 2024

Shiozaki and others also once called on the Kishida government to appoint a Japanese “Minister for web3.”

Local Revitalization Projects

As previously reported, Ishiba’s election manifesto included sections on the use of blockchain technology and NFTs in regional development projects. The document explained:

“Using blockchain technology, NFTs, and more, we will look to maximize the value of a multitude of analog local products, such as food and tourism experiences. We will do this by restoring their value to global prices.”

Ishiba’s LDP retained control of parliament in the general election held on October 27 this year.

The party has been in power since 1955, with the exception of two short spells in opposition: between 1993 and 1994, and 2009-2012.