Japan Emerges as a Global Leader in Compliant Crypto Payments
Japan has established itself as a global leader in compliant crypto payment services, according to a report published by independent finance news outlet FinanceFeeds. The conclusion is supported by the recent announcement from Japanese Web3 payments app Slash, stating that it has facilitated over $10,000,000 in transactions between 3,000 merchants.
Slash: A Compliant Payments App
Slash is considered a compliant payments app due to its adherence to Japan’s stringent requirements for crypto service providers. The app allows only crypto-to-crypto swaps, eliminating the option for crypto-to-fiat transactions. As a result, users primarily conduct their purchases using stablecoins.
This approach enables Slash to bypass Japan’s high taxation policy of 55% on “miscellaneous income,” which is the current regulatory category for cryptocurrencies in the country.
In addition to its current operations, Slash has ambitious plans for the near future. The company intends to launch a credit card linked to users’ digital wallets later this year. This initiative aims to further facilitate large-scale compliant adoption of crypto throughout Japan.
Japan’s Acceptance of Crypto
Japanese lawmakers have generally embraced cryptocurrencies as an essential part of fintech development. Both the central bank and the Financial Services Agency have provided clear guidance to businesses utilizing blockchain elements such as stablecoins and DAOs.
The regulation of stablecoins in Japan is strict. Only banks, trust companies, and money transmission services are authorized to issue stablecoins. Additionally, all reserves supporting the value of the stablecoin must be held in Japanese trust and invested exclusively in domestic bank accounts.
In a recent development, authorities for the city of Kochi signed an agreement to virtualize the city on the Japanese Start Land metaverse application. The city hopes to attract online tourists starting this summer.
Furthermore, the Ministry of Economy hinted at a potential rule change that would allow venture capital firms to hold cryptocurrencies, which is a crucial aspect of investing in the industry.
Notably, Mitsubishi UFJ, Rakuten, and Mizuho, three major Japanese financial firms, announced their plans to launch a tokenized bond. This bond represents a form of loan from investors that will pay interest in cryptocurrency.
Yesterday, USDC issuer Circle revealed its partnership with domestic exchange Coincheck to secure the stablecoin’s first listing in Japan.
Hot Take: Japan Leads the Way in Compliant Crypto Payments
Japan has emerged as a global leader in compliant crypto payments, driven by the success of Slash and the country’s favorable regulatory environment. With its focus on crypto-to-crypto transactions and stablecoin usage, Slash has navigated around Japan’s high taxation policy. The government’s acceptance of cryptocurrencies as part of fintech development has created a conducive atmosphere for businesses and investors alike. As Japan continues to embrace digital currencies and explore innovative applications like virtualizing cities, it solidifies its position as a frontrunner in compliant crypto adoption. With major financial institutions also entering the crypto space, Japan is poised for further growth and innovation in the realm of digital payments.
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