Japan’s financial services agency discusses Web3-based services

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Japan’s financial regulators met on October 4 to discuss the impact of Web3 services including blockchain and decentralized finance (DeFi) on the economy. 

Officials at the Financial Services Agency examined reports from Chainalysis, a U.S. company that provides Web3 analysis services, and Gaudiy, a blockchain game company, about the international environment surrounding Web 3.0 and policy issues in Japan.

They also exchanged opinions on the possible use of blockchain games to help solve social issues, according to Japanese media.

This was the seventh time the agency held a similar meeting to study how Japan responds to the Web3 trend.

Views examined during the meeting included the advantages of blockchain-based financial services over traditional ones. Blockchain services were considered to have a faster speed, lower costs, and the possibility of responding to individual user needs. 

On the other hand, the agency noted that issues such as user protection, the impact on the financial system, and equality of stakeholders had to be addressed when developing blockchain-based services.

During his policy speech to parliament on October 3, Prime Minister Fumio Kishida pledged to expand the use of Web3 technologies, including NFTs and the metaverse.

The Japanese government stated in its development blueprints in June that it intends to study systemic improvements to promote Web3, the use of NFTs and decentralized autonomous organizations (DAOs).

In July, the Ministry of Economy, Trade and Industry announced the establishment of the “Web 3.0 Policy Promotion Office” to study business environment issues related to Web3 in cooperation with the Digital Agency and other related ministries. In September, it was announced that the Digital Agency would establish a “Web 3.0 Study Group” to study the promotion of Web3.