In addition to Sony, Japanese companies that are exploring blockchain-related projects include Nippon Telegraph and Telephone Co. (NTT), Toyota Motor Corp. and Mitsubishi UFJ Financial Group. The latter, Japan's largest bank, is studying the issuance of a stablecoin. Under Prime Minister Fumio Kishida, regulators have taken steps to simplify the process of listing digital tokens on cryptocurrency exchanges and have also made web3 a priority. However, as Kishida's term is coming to an end, it is unclear whether his successor will continue to support web3. A major issue for industry players is that the tax on gains from traditional investments is usually 20%, while the tax on gains from cryptocurrencies is as high as 55%. On the other hand, crypto trading activity in Japan is recovering from a slump, with average monthly trading volume on Japanese CEXs approaching $10 billion, up from $6.2 billion in 2023, according to CCData. (Bloomberg)
