Japan emerges as one of the most progressive nations in terms of crypto payments and Web3

Japan has been one of the most forward-thinking and progressive nations when it comes to its willingness to accept the crypto industry. For years now, its government has been taking a positive approach to emerging crypto concepts, trying to regulate the industry instead of suppressing it.

It was one of the first to accept and allow crypto payments as far back as 2017 when it said that stores were allowed to accept Bitcoin as a method of payment. It also became the first nation in the world to create a regulatory framework for cryptocurrencies back in 2016.

Japan was among the first to open its doors to crypto

In the years that followed, Japan continued to be one of the leaders of the industry, emerging as one of the most progressive countries when it comes to Web3. In fact, the only thing that it did not do is recognize Bitcoin as legal tender.

In 2023, the country’s Liberal Democratic Party — Japan’s largest political party — published a document titled Japan 2023 Web3 Whitepaper. In it, it eased some of the regulatory burden that used to weigh heavily on crypto projects. Along the way, it also encouraged the development of multiple aspects of the crypto industry, including the blockchain gaming sector and non-fungible tokens (NFTs).

As a result of the nation’s positive stance toward cryptos, Japan saw a continuous increase in the adoption of cryptocurrency payments. The number of high-profile retailers and other businesses that chose to accept crypto payments also saw a steady rise.

Some of them accepted cryptocurrencies as an alternative to fiat payments back in 2017, such as Marui, a well-known department store chain. The company even teamed up with a crypto exchange Bitflyer, which served to inspire others to do the same.

Even though others were slow to follow, they still followed in years to come. In 2018, consumer electronics retailer Yamada Denki made the same move, and similar announcements were made by other firms over the next half a decade. In fact, it is still ongoing today, with e-commerce giant Mercari being one of the most recent ones to adopt Bitcoin payments, as announced in January of this year.

Japan has strict rules, but does not hinder innovation

While some countries did recognize BTC as a legal tender over the last few years, Japan is generally considered to be one of the most crypto-friendly countries in the world. However, it always remained cautious, understanding that the risks accompany the benefits when it comes to everything, including cryptos.

This is why it has some of the strictest regulations in the world. All exchanges must register in order to operate in the country, and only banks and registered financial institutions are allowed to issue stablecoins. The crypto industry has also seen rather heavy taxes. But, despite the restrictions, Japan also managed not to hinder innovation.

Balancing the two has proven to be a difficult task, but so far, the country has been one of the rare examples of nations that managed to achieve it, and as such, it serves as an example for the rest of the world to follow.