Japan’s current prime minister, Fumio Kishida, is facing doubts about his economic policies and stance on cryptocurrencies as he prepares to step down. A survey conducted by Teikoku Databank revealed that Kishida’s performance scored lower than his predecessor, Shinzo Abe. The average score given to Kishida’s administration was 49.3 out of 100, while Abe received an average score of 59.4. The ratings highlight concerns among Japanese businesses and crypto traders about the government’s approach, despite some seemingly positive developments in the market.
The survey indicated that smaller companies were less satisfied with Kishida’s policies, with one chemical wholesaler citing difficulty for small and medium-sized enterprises. However, other businesses expressed appreciation for rising stock prices and wage increases, attributing them to initiatives like the tax-free small investment system (NISA) and a weakened yen. The struggle with inflation and fiat currency depreciation has led to varying perceptions among different economic strata and when considering the dollar-to-yen exchange rates.
In the realm of cryptocurrencies, Kishida was praised by crypto bulls for supporting web3 development during his tenure. Crypto trading on Japan’s centralized exchanges has experienced a revival in 2024, with average monthly volumes increasing by approximately $4 billion compared to the previous year. However, concerns about Japan’s crypto regulations persist, particularly regarding the high tax rates imposed on crypto gains. The potential introduction of more stringent policies following Kishida’s departure, including PM hopeful Taro Kono’s proposed conservative reforms, has raised further doubts.
Despite these concerns, certain developments, such as endorsements from Ripple CEO Brad Garlinghouse and the demand for a yen stablecoin, suggest a favorable environment for crypto in Japan. Notable blockchain initiatives involving companies like Sony’s Soneium, SBI, and NTT have also emerged. However, these developments seem detached from Satoshi Nakamoto’s original vision of Bitcoin as a decentralized and peer-to-peer currency.
The perception of Japan’s crypto-friendliness remains complex and nuanced, as stated by the CEO of SBI Digital Asset Holdings, who emphasized that it is not as straightforward as it may seem.