Japan Embraces Web3
Japan's PM Reiterates Support for Web3 and Startups, Plans Funding Expansion
Key Points
WebX 2026 attendance is expected to reach about 15,000 participants, underscoring its status as Asia's largest Web3 gathering.
A tax reform framework under consideration could impose a 20% tax on crypto gains and create a route for domestic crypto exchange-traded funds.
The Comprehensive Startup Support Package ties into the 2022 Five-Year Startup Development Plan and calls for more capital from government-backed funds and financial institutions, along with regulatory changes to help young firms grow, with no timetable for rollout.
Public-private cooperation will be central to Japan's innovation push, with the prime minister stressing collaboration between government and private sector to strengthen the startup Web3 ecosystem.
Japanese Prime Minister Sanae Takaichi used the WebX 2026 conference in Tokyo to reaffirm her government's commitment to funding Web3 startups and cutting red tape for young companies, according to Crypto News. The conference is expected to draw around 15,000 participants, making it Asia's largest Web3 gathering.
Takaichi pointed to the government's Comprehensive Startup Support Package, prepared in May 2025, as the policy backbone for Japan's push. The country wants to raise annual startup investment to 10 trillion yen by fiscal 2027 and build an ecosystem with 100 unicorns and 100,000 startups, Finance Feeds reported.
Japan Ties Web3 Directly to Its Startup Growth Plan
Takaichi delivered her remarks in a video address at WebX 2026, linking Web3 to Japan's broader 2022 Five-Year Startup Development Plan. She framed Web3 not as a standalone crypto sector but as a core part of Japan's digital economy, according to Crypto.news.
The Comprehensive Startup Support Package calls for more capital from government-backed funds and financial institutions. It also includes regulatory changes to help young firms grow faster. Officials have not announced new funding amounts or a specific timetable for rollout, Bloomingbit noted.
Crypto Tax Reform and ETFs Could Reshape the Market
Japan is also weighing a significant tax overhaul for digital assets. A reform framework under consideration would cap crypto gains taxes at 20%, according to Grafa. Currently, crypto profits in Japan can be taxed as high as 55% under income tax rules.
The same framework could open a path for domestic crypto exchange-traded funds, or ETFs. ETFs let everyday investors buy into an asset without holding it directly. If approved, this would mark a major step toward making crypto more accessible to Japanese retail investors.
Government and Private Sector to Build the Ecosystem Together
Takaichi stressed that public-private cooperation will be central to Japan's innovation push. She called for close collaboration between government and private companies to strengthen the Web3 and startup ecosystem, according to Finance Feeds.
Observers note that events like WebX give the government a direct line to investors and founders. The overall goal is to position Japan as a global hub for Web3 and digital assets, Bloomingbit reported. No new dedicated funds were announced at the conference itself.
Deregulation Aims to Help Startups Scale Faster
Beyond funding, Japan is pushing deregulation to help startups move quickly. Takaichi's government wants rule changes that let young companies test and grow without getting stuck in slow approval processes. Grafa reported the moves are part of Japan's strategy to compete globally in tech and digital finance.
Tokenization of assets — turning real-world things like property or stocks into digital tokens on a blockchain — is also part of the plan. Japan sees this as a way to modernize its financial system and attract global capital, according to Crypto News.
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