The Japanese government's Web3 project group approved a white paper with recommendations for developing the country's industry. The white paper states that Japan should discuss cryptocurrencies at this year's Group of Seven (G7) summit. It suggests that the country should look to the future potential of Web3 and clarify its leadership in technology neutrality and responsible innovation.

The white paper recommends further changes to tax regulations, noting that a major exemption for token issuers has been approved. These include tax exemptions for companies that hold tokens issued by other companies that will not be traded in the short term. It proposes allowing self-assessment so that investors can carry forward losses for three years, and that cryptocurrencies should be taxed only when the assets are converted into fiat currency. It also suggests developing DAO laws based on Japan's godo kaisha (a type of business similar to a limited liability company). On the NFT side, the white paper proposes a public-private partnership to develop guidelines for legal business models for fantasy sports services. (CoinDesk)