[NEWS] Japan could become a global leader in cryptocurrency settlements, reports British media

On the 28th, British Web 3.0 media Finance Feeds reported that Japan is "rapidly emerging as a global leader in compliant cryptocurrency (virtual currency) payments."

The report praised Japan as one of the most cutting-edge countries in the cryptocurrency field, and analyzed the Japanese government's efforts as "very positive about the potential of Web 3.0."

Although Japan has not recognized Bitcoin (BTC) as legal tender, it has emerged as one of the most advanced countries in the Web 3.0 industry as one of the first countries in the world to accept cryptocurrency payments as a payment method in stores in 2017.

Although it is gradual, the number of cases of introducing cryptocurrency payments in Japan is on the rise. It also praised the Liberal Democratic Party for releasing the "Web 3.0 White Paper" to reduce the regulatory burden on cryptocurrency projects and promote the development of NFTs and blockchain games.

The first cryptocurrency payment to be introduced in Japan was the major electronics retailer Big Camera, which made Bitcoin payments possible in 2017. Since then, rival Yamada Denki has also introduced Bitcoin payments in partnership with cryptocurrency exchange bitFlyer.

Moreover, he is currently most appreciative of Mercari's adoption of Bitcoin as a payment method on its flea market app. Mercari began offering Bitcoin payment functionality last month.

Barriers still exist

However, he points out that there are also barriers to cryptocurrency in Japan. In particular, Japan has the strictest regulations in the world for cryptocurrency exchange operators, and even for the use of stablecoins, only banks and registered financial institutions can legally issue them.

He also explains that the cryptocurrency tax system is also a barrier. Currently, in Japan, cryptocurrency is classified as "miscellaneous income" under the tax system, and profits earned from transactions are subject to comprehensive taxation of up to 55%.

On the other hand, he points out that several innovative companies have emerged that circumvent the rules. He said that these companies are making it easy to introduce cryptocurrency payments without violating the rules, and he particularly praised Slash Payments, led by Shinsuke Sato.

Slash Payments is a payment solution that allows payments with over 1,400 types of crypto assets, and has 3,000 participating stores.

Finance Feeds concludes by noting that "Japan is currently at the forefront of crypto innovation and appears to be on the right track." It then concludes, "As crypto payment providers like Slash increase their presence in the market, Japan could emerge as a model for how to integrate crypto assets into the traditional financial system and broader society."

Reference:Press
Image: Shutterstock

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