Japan's Lessons in Crypto Regulation, Cutting-Edge Tech, and Entrepreneurship

Japan's strict rules on cryptocurrency exchanges, put in place after the MtGox and Coincheck hacks, have allowed FTX's Japanese unit to return money to clients while its parent company remains in bankruptcy. Japan is now seeking to become a leader in regulating the decentralized, blockchain-based technologies known as web3, with a national economic strategy and a bid to lead its allies in creating effective rules for the industry. The country's ruling Liberal Democratic Party's web3 project team has released a white paper outlining several recommendations, including a call for Tokyo to take the lead in promoting the potential of web3.