Japan's Web3 future at stake amid political turmoil

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.