Report

Bitcoin & Web3: Japan gets innovative as Signuptoken.com turns head

By Guest Writer • Published: 04 May 2023 • 16:52

Japan has given us so many wonderful things over the years from our daily forms of transport with Honda and Toyota automobiles and cars leading the innovative space to Jaw dropping due such as Mothra and Godzilla. They have shaped many childhoods and our ability to problem solve with first the Super Nintendo and then PlayStation.

It’s no wonder that the phrase quality is associated with products that have been manufactured in Japan. The thing is though quality is always the most cost-effective which is why the world turns to China for cost-effectiveness since they are able to achieve every imaginable level of quality based on desired cost.

Japan’s Crypto Tax Regulations: Beyond pop culture icons

Japan introduced tax regulations for cryptocurrency companies and individuals that profit from taxes in March 2014. Japan’s tax regulations for cryptocurrency companies include companies and individuals to pay various taxes such as corporate tax, income tax, and consumption tax. The current corporate tax in Japan is currently set at 30.86% with income tax being levied on earnings from cryptocurrency ranging from 5% to 45%. Cryptocurrency transactions that take place in Japan are subject to consumption tax which is a value-added tax for the sales of goods and services at 10%.

It’s not surprising to understand that according to Japan’s tax regulation of nearly 85.86% many corporations that dealt in the crypto space vacated the country for alternative locations with reduced tax liabilities. Since 2014 Japan has implemented various other tax regulations for cryptocurrency which have undergone various revisions and updates with the latest update taking place between 2019-2020.

Japan’s tax history timeline related to cryptocurrencies

March 2014: Japan’s tax authority declares that Bitcoin and other cryptocurrencies would be treated as property for tax purposes. This meant that profits earned from cryptocurrency trading would be subject to capital gains tax in Japan.
December 2016: The Japanese government passes a bill that officially recognises Bitcoin as a legal method of payment. This move was aimed at boosting the adoption of cryptocurrencies in Japan and promoting innovation in the industry.
July 2017: Japan’s National Tax Agency clarifies that profits earned from cryptocurrency trading are subject to capital gains tax, with a tax rate of up to 55%.
January 2018: The Japanese government introduces new regulations for cryptocurrency exchanges, requiring them to register with the Financial Services Agency (FSA) and comply with strict security and KYC/AML requirements. The government also introduces a tax exemption for small cryptocurrency transactions.
October 2018: The FSA announces new rules for cryptocurrency margin trading, limiting leverage to 2x and requiring exchanges to monitor customer positions and report any suspicious activity to the authorities.
January 2019: Japan’s National Tax Agency introduces new guidelines for calculating taxes on cryptocurrency trading, providing more clarity and transparency for taxpayers.

April 2020: The Japanese government approves a bill to amend the Payment Services Act and Financial Instruments and Exchange Act, introducing new regulations for cryptocurrency derivatives trading and margin trading.

Japan sets stage for Web3

Japan has recently published a white paper to foster the growth and advancement of the Web3 industry, encompassing blockchain technology, decentralised autonomous organisations (DAOs), and non-fungible tokens (NFTs). The white paper primarily concentrates on regulatory policies, research and development, as well as global cooperation within the Web3 sector.

Web3 is the third iteration of the internet and will truly allow the world to grow with the revolution that is coming. Currently only, major tech giants benefit from user activity engagements on platforms such as Facebook and YouTube with a select few benefiting. Web3 will change the digital landscape with users being in control and benefiting which when combined with DAO’s and blockchain technology will allow the pop culture of Japan to flourish into the digital space dubbed the metaverse.

Examples of the convergence between Web3 and Japanese pop culture

NFTs feature iconic anime characters such as Naruto, Dragon Ball Z, and Sailor Moon, allowing fans to own a piece of their favourite shows and characters.
DAOs for fan communities to collectively decide on and fund new anime or manga projects, bringing the power of creation to the fans.
Virtual reality experiences that allow users to step into their favourite anime or video game worlds and interact with the characters and environments in a fully immersive way.
Collaborative projects between Japanese artists and musicians, creating unique and interactive NFT art pieces that incorporate music and visuals.
Blockchain-based marketplaces for Japanese fashion and merchandise, allow creators and consumers to interact directly without the need for middlemen.

Signuptoken.com, a potential home for Japanese pop culture.

Signuptoken.com is a new blockchain platform that has yet to go live and at first, it was unclear what was meant by the aim of the platform. The goal of Signuptoken.com is to allow users to share data while maintaining privacy which may also serve as a new home for the future of Japanese pop culture enthusiasts. The native token would allow interaction and engagement between creators and the metaverse by utilising the benefits of Web3.

The platform is focused at this time on increasing its community prior to going live and users can participate by registering their email addresses. Once 1 million subscribers have been established the blockchain will go live which in turn will allow users to also trade the native token on various coin exchanges.