The Japanese Liberal Democratic Party (LDP) has expressed its intention to make Japan a hub for Web3. In a proposal from the Japanese LDP project team, it is stated that while many other countries are stagnant and indifferent to the cold wind, Japan has the potential to play a unique role in the cryptocurrency industry.

Japan has had its fair share of challenges in the cryptocurrency space. Following the Coincheck hack in early 2018, Japanese regulators took a strict stance on cryptocurrencies, causing concerns about the local industry. However, when FTX collapsed in November 2022, Japan’s regulatory approach led to a major win. The country requires cryptocurrency exchanges to separate assets from exchanges and customers, which helped FTX Japan users recover their funds.