Japan's embrace of Web3 technology, championed by Prime Minister Fumio Kishida and the ruling Liberal Democratic Party (LDP), faces uncertainty as the party grapples with record-low support and a major corruption scandal.
Despite Kishida's endorsement of Web3 as a key aspect of his economic policy, the upcoming party leadership elections in September may bring changes that affect the country's Web3 strategy and regulations.
The LDP's long-standing power dominance is challenged by the scandal and upcoming by-elections, potentially leading to leadership changes that could impact Web3 policies.
Under Kishida's leadership, Japan has implemented regulations for stablecoins and established plans for crypto sector development, viewing it as a pillar for economic growth following the market collapse of 2022.
The government's Web3 project team has released a white paper outlining strategies for non-fungible tokens (NFTs) and decentralised autonomous organisations (DAOs), but the party's uncertain future casts doubt on the continuity of these efforts.