The US-based cryptocurrency exchange Coinbase Global Inc. is reducing headcount in Japan as part of the firm’s move to cut 20% of staff amid a prolonged slump in digital-asset markets.

Japan has no doubt played an important role in the early days of cryptocurrency with its positive outlook on digital blockchain-based currencies and drive for innovation.

Japan will make it easier for cryptocurrency exchanges to list tokens, pressing ahead with plans to liberalize the industry even after the epic failure of Sam Bankman-Fried’s digital empire.

Japan-based game company Gumi Co. Ltd. has announced a capital and business alliance with Square Enix Holdings Co. Ltd. and financial services company SBI Holdings Co. Ltd. to accelerate the growth of its metaverse business as a secondary revenue stream. Earlier this year, Square Enix sold three of its gaming studios, including Tomb Raider, to raise funds for new ventures utilizing blockchain technology. In October, Konami announced 13 new job positions to integrate its game titles with metaverse technologies. (forkast)

Japan’s government has decided to make listings by cryptocurrency exchange easier in the country despite the gloomy crypto market situation and the implosion of FTX.

After due consideration, Kraken has decided to cease its operations in Japan and deregister from the Financial Services Agency (JFSA) as of January 31, 2023. The decision is part of Kraken’s efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long-term success. Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time. As a result, Kraken will no longer service clients in Japan through Payward Asia.

Japan’s Financial Services Agency (FSA) has announced a draft system and guidelines for the circulation of stablecoins whose value is tied to legal currencies such as the U.S. dollar.

At present, Japanese firms that issue crypto are required to pay a set 30% corporate tax rate on their holdings, even if they haven’t realized a profit through a sale. As such, a number of domestically founded crypto/blockchain firms and talent have reportedly chosen to set up shop elsewhere over the past few years. Japan’s ruling party, the Liberal Democratic Party’s (LDP) tax committee held a meeting on Dec. 15 and approved a proposal — initially tabled in August — which removes the requirement for crypto companies to pay taxes on paper gains from tokens that they have issued and held. (Cointelegraph)

Japan’s ruling political party agreed to ease corporate tax rules for virtual currencies, signaling support for an industry reeling from the meltdown of Sam Bankman-Fried’s crypto empire. 

A rundown of the current state and what is in store for next year, from the macroeconomic picture, through sector-specific themes across Banking, Payments and Digital Assets.