A report published Wednesday by independent financial service FinanceFeeds indicates that Japan ranks first in the world in terms of compliance of cryptocurrency payment services.
The conclusion stems from the announcement that Japanese payment app Web3 Slash has enabled transactions worth more than $10,000,000 between 3,000 merchants.
Since Slash meets the strict standards of crypto service providers in Japan, it is a suitable payment app. The app only allows the conversion of cryptocurrencies to cryptocurrencies, not cryptocurrencies to fiat currencies, so most purchases are made with stablecoins.
In this way, Slash will avoid the prohibitive tax policy of 55% on “miscellaneous income,” a legal category currently used in Japan to regulate cryptocurrencies.
The company also has ambitious plans for the near future. Later this year, it will facilitate the large-scale adoption of cryptocurrencies nationwide by introducing a credit card linked to the digital wallets of app users.
Many well-known retailers in the country, such as department store chain Marui, leading electronics retailer Yamada Denki and e-commerce giant Mercari, accept Bitcoin as a means of payment in their applications.
Japanese lawmakers have embraced cryptocurrencies as an important part of fintech development. The central bank and the Financial Services Agency have given companies using blockchain elements clear instructions on requirements and regulations.
The country has strict regulations on stablecoin. Only banks, trust companies and money transfer services can issue them, and all reserves that create the value of a stablecoin must be held in a Japanese trust fund and invested only in domestic bank accounts.
As we reported earlier, Kochi city authorities concluded a deal to virtualize the city using Japan’s metaverse Start Land app earlier this month. Later this summer, they hope to welcome the first online visitors.
According to an official announcement from the Ministry of Economy mid-month, the country may introduce upcoming regulatory changes that would allow mutual fund companies to hold cryptocurrencies as an important part of their investments.
Last week, Japanese financial mega-corporations Mitsubishi UFJ, Rakuten and Mizuho announced they were launching a tokenized bond, a type of loan to investors to pay them interest on cryptocurrencies.
Recently, issuer USDC Circle announced that it has partnered with domestic exchange Coincheck to create the first stablecoin listing in Japan.
