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The entertainment giant Sony is the latest Japanese-based company to tap into blockchain technology, amidst calls to the government to bring in looser regulations around crypto.
It was in August when Sony unveiled its digital ledger named Soneium, with hopes this will provide a “world where Web3 use cases” become “part of daily life.” There are plans for Soneium to intersect with gaming, music, and movies in the future to yield more opportunities.
Sony isn’t the first to turn their attention to blockchain though, with other Japanese firms exploring blockchain-related initiatives including Toyota Motor Corp, Mitsubishi UFJ Financial Group Inc, and Nippon Telegraph & Telephone Corp.
Introducing #Soneium by #Sony Block Solutions Labs building a public Ethereum layer 2 next-generation blockchain ecosystem designed to invoke emotion and empower creativity.
Soneium aims to connect Web3 with everyday internet services, making blockchain technology more… pic.twitter.com/I7zAIbB5Td
— Soneium 💿 (@soneium) August 23, 2024
With so many major players starting to introduce these new technologies, there are questions about whether the government will adopt requests from the crypto community to bring in less onerous rules.
Currently, the tax on gains from traditional investments in Japan is typically 20% but crypto can be as high as 55%.
Corporate crypto holders must also pay a flat 30% tax rate on their holdings at the end of the financial year, even if a profit hasn’t been made via a sale.
Japanese prime minister will be elected into a world of blockchain and crypto adoption by major corporations
Under Prime Minister Fumio Kishida, it became easier to list digital tokens at crypto exchanges. But his tenure is coming to an end, with the election for Japan’s next prime minister taking place on September 27.
There are hopes that the current hopefuls will also champion web3 in the way that Kishida has done throughout his leadership.
Work is being undertaken by pro-crypto lobbying groups in the country to shake up current regulations, including a push for tax reform.
The Japan Blockchain Association formally requested the government to lower the crypto asset tax rate in 2023. Then, on July 19, the group submitted a request for tax reform on crypto assets for the 2025 financial year.
They proposed a 20% tax rate for crypto and a three-year loss carryover deduction, but their efforts so far haven’t yet yielded any changes.
Featured Image: By xsix on Flickr
