The founder of the SBI-owned BITPOINT crypto exchange has claimed that Japan’s share of the global crypto market is on the decline.
The comments came from Genki Oda, the BITPOINT founder and the Chairman of the self-regulatory Japan Cryptocurrency Exchange Association.
Japan Crypto Market Slowdown to Continue?
Oda also serves as the head of the JCBA, Japan’s biggest crypto and blockchain association, and is an Executive Vice President at SBI.
The BITPOINT founder was mediating a session at the WebX2024 summit, the Japanese media outlet CoinPost reported on September 3.
Oda began the session by pointing out that “there was a time when about 50%” of global Bitcoin (BTC) trading was conducted in Japanese yen.
He explained that the country was the global crypto epicenter from 2017 to 2018. However, he lamented that “as of 2024,” the Japanese yen’s trading volume only accounts for “a small percentage of the global share.”
Worse still, Oda noted, “Japan’s presence” in the market is “fading.”
Trading volumes on the Japanese crypto exchange bitFlyer over the past 12 months. (Source: CoinGecko)Lawmakers Defend Government Policies
Also attending the session were two key Liberal Democratic Party (LDP) lawmakers: the web3 project team chair Masaaki Taira and the LDP Financial Research Committee Secretary-General Takao Ochi.
The LDP is Japan’s ruling political party. Oda quizzed the lawmakers on the government’s response to Japan’s dwindling influence on the global crypto scene.
“Former President Donald Trump recently made headlines when he announced his intention to incorporate cryptoassets into his policies. He said that Bitcoin will ‘make America great again.’ In this case, how does the Japanese government intend to [approach] cryptoassets?”
Genki Oda, Chairman of the Japan Cryptocurrency Exchange AssociationTaira answered that much of this would depend on the results of forthcoming elections in both Japan and the USA.
“In the United States, it is still unknown who will become President after November’s elections. In Japan […] it is also unclear who will become the next Prime Minister.”
LDP Lawmaker Masaaki TairaNew PM to Shape Crypto Policy for Japan
Taira was speaking in the wake of Prime Minister Fumio Kishida’s announcement last month that he would step down in September.
Kishida has pursued pro-web3 policies since he took office. But it remains unclear if his successor will look to follow Kishida’s lead.
The ruling Prime Minister has spoken about web3’s potential as a future growth engine for the Japanese economy.
He has also talked up the potential of using non-fungible tokens (NFTs) as part of new Japanese economic drives.
The lawmakers also spoke about the government’s record on crypto tax reform. Tokyo has already changed the way it taxes crypto-holding firms.
Regulators have also asked the government to abolish sliding income tax on crypto earnings in favor of a flat 20% capital gains levy on trading profits.
Japanese People Are ‘Not Talking Much About Crypto Anymore’
However, as things stand, the tax rules for individuals remain in place. The media outlet explained:
“There are concerns that [Japan’s] strict tax rules will lead to a decline in the international competitiveness of Japanese web3-related businesses.”
Political opponents and crypto industry leaders have accused Tokyo of dragging its heels.
They have warned that many of Japan’s top crypto and blockchain talents are relocating overseas in a bid to escape prohibitive taxes and regulations.
Osaka resident Hiroko Nozue told Cryptonews.com:
“People here generally don’t talk about crypto or Bitcoin as much as they used to.”
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