Japanese Prime Minister Sanae Takaichi recently addressed the WebX 2026 conference in Tokyo, reinforcing the government’s commitment to fostering growth in the Web3 sector. The event, one of Asia’s largest gatherings dedicated to blockchain technology, is expected to attract around 15,000 attendees eager to explore innovative use cases in the crypto space.
During her video address on July 13, Takaichi emphasized that Web3 is integral to Japan’s broader innovation strategy, highlighting its potential to connect startups with investors and facilitate discussions on future technological advancements. Although she did not unveil a new dedicated Web3 fund or immediate regulatory changes for crypto enterprises, her remarks indicate a positive direction for the industry.
Boosting Startup Investment with Comprehensive Support
Takaichi pointed to the Comprehensive Startup Support Package, introduced in May 2025, which aims to raise Japan’s annual startup investment to a staggering 10 trillion yen by fiscal 2027. This initiative builds on the Five-Year Startup Development Plan adopted in 2022 and seeks to position Japan as a leading startup hub in Asia.
The support package outlines plans for increased capital from government-backed funds and financial institutions, alongside regulatory reforms designed to aid young companies in scaling operations and accessing larger markets. However, Takaichi did not specify a timeline for the implementation of these measures, making the actual impact dependent on future investment activity.
Progress on Crypto Tax Reform and Private Initiatives
In addition to funding support, Japan is revising its digital asset regulations. Lawmakers are advancing a bill proposing a flat 20% tax rate on cryptocurrency gains, aligning crypto taxation more closely with that of stocks and bonds. This proposed reform could also pave the way for domestic cryptocurrency exchange-traded funds (ETFs), with the new tax provisions anticipated to come into effect as early as 2028.
Moreover, private funding is also making waves in the Web3 space. Ripple, in collaboration with Web3 Salon, has initiated a grant program offering up to $200,000 for Japanese teams developing projects on the XRP Ledger. This initiative focuses on sectors such as payments, tokenized assets, and decentralized finance, showcasing the synergy between public agencies and private enterprises in supporting startup founders.
Takaichi’s address aligns with efforts from previous administrations, as former Prime Ministers Fumio Kishida and Shigeru Ishiba also expressed their backing for the industry in recent years. While these speeches indicate a commitment from government officials, the real test will be in the execution of the startup package and the finalization of crypto legislation.
As Japan navigates the complexities of fostering innovation while ensuring regulatory compliance, the next steps involve not only the implementation of the startup support package but also the confirmation that new capital effectively reaches emerging companies. With Takaichi at the helm, the future of Japan’s Web3 landscape looks promising as it seeks to nurture a thriving ecosystem that could potentially yield 100 unicorns and 100,000 startups.
