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Japanese Web3 Market Insights: Government Policies, Corporate Trends, and 2025 Outlook
Original Article Title: "2024 Japan Web3 Market: Government Policies and Major Enterprises' Trends - Outlook for 2025"
Original Source: Pacific Meta
Introduction
Currently, Japan is attempting to pioneer a new chapter on the Web3 stage. As a country at the forefront of cryptocurrency regulation, Japan's efforts are not limited to refining laws and regulations but also act as a bridge connecting new technologies with society, attracting widespread attention domestically and internationally. This trend is further accelerating, and Japan's environment around Web3 is rapidly evolving.
Against the backdrop of global exploration of Web3 possibilities, what direction is Japan moving in? What specific regulations have been put in place? What challenges are enterprises facing? And what are the needs of individual users and investors? To answer these questions, this article will analyze the latest developments in Japanese Web3 in 2024 from the perspectives of "Society and Politics," "Enterprises," and "Individual Users."
This article is authored by the Web3 accelerator Pacific Meta. Pacific Meta is a professional company driving Web3 innovation by providing services such as fundraising, marketing, and business development support.
1. Trends in Society and Politics
1-1. New Government under Shigeru Ishiba
Image Source: The Nikkei
In September 2024, Shigeru Ishiba was elected as the new president of the Liberal Democratic Party in the party's leadership election. Due to Japan's system, the leader of the ruling party typically becomes the prime minister. Therefore, Mr. Ishiba, as the current president of the ruling party, will become Japan's new leader and be responsible for forming a new government. Under the previous leadership of Fumio Kishida, Japan has been actively promoting Web3 development, and people are looking forward to this trend accelerating further under Ishiba's leadership.
Image Source: State Strategy Discussed by "Web3 Minister" Akihira Taira as a Highlight of Cabinet Reshuffle
Of particular note is the presence of Akihira Taira, head of the Liberal Democratic Party's Web3 Project Team (Web3PT). As a key figure in driving Web3 development during the Kishida administration, Mr. Taira has been appointed as the Minister of the Digital Agency in the new administration. His assumption of this key role is expected to further enhance his influence and decision-making power in policy matters.
In Japan, Web3 technology is seen as a key driver of new economic growth, so people have been eagerly awaiting the improvement of relevant regulations and legal systems. With the establishment of the Kishida administration, it is expected that the momentum of policy promotion will be further strengthened. In particular, in terms of clarifying the legal framework in the Web3 field and enhancing international competitiveness, accelerated development is expected.
1-2. Changes in Regulation and Taxation
Corporate Entity: End-of-Year Market Value Assessment Tax No Longer Applicable
As part of the significant tax system reform for the 2024 fiscal year, corporate-held crypto assets are excluded from the scope of the "end-of-year market value assessment tax." Previously, domestic corporations faced the tax risk of unrealized gains solely due to holding crypto assets, leading many companies to establish overseas entities to conduct business. This policy adjustment has created an environment for domestic Japanese companies where they no longer need to worry about unrealized gains taxation and can focus on their business activities.
Japan's efforts to enhance regulation regarding crypto assets began with the amendment of the "Payment Services Act" in 2017. Through this law, crypto assets like Bitcoin were recognized as a payment method and positioned as digital assets distinct from legal tender. Subsequently, in 2020, ICOs (Initial Coin Offerings) and STOs (Security Token Offerings) were included in the regulatory framework of the "Financial Instruments and Exchange Act," establishing a foundation with the aim of protecting investors. Additionally, in 2023, Japan introduced regulations concerning stablecoins (crypto assets pegged to the value of legal tender), steadily advancing the legal system in the Web3 field.
However, in terms of taxation, there has been a lack of significant progress for many years. Specifically, the taxation of corporate-held crypto assets has long been viewed as a key issue affecting the development of Japan's Web3 industry. Under the current system, unrealized gains of crypto assets held by companies at year-end are taxed under the "end-of-year market value assessment tax" system. This system disregards the risk of crypto asset price fluctuations and has created financial burdens for many companies. As a result, many enterprises wishing to operate in Japan have chosen to avoid holding crypto assets domestically and instead establish legal entities overseas to conduct their business.
This tax system reform is expected to promote an increase in domestic token issuance and fundraising in Japan. Especially for startups and new businesses considering entering the market, Japan will become a more attractive market.
Taxation Issues for Individual Investors and Future Prospects
On the other hand, there are still many issues regarding the taxation of individual investors. Currently, gains from personal crypto asset trading are classified as "miscellaneous income" and taxed under the comprehensive tax system, with the highest tax rate reaching 55%. The heavy tax burden and complex reporting procedures have become significant obstacles for many individual investors.
As the leader of the Web3 project team of the ruling party, the Liberal Democratic Party, Representative Hirano pointed out at the "WebX2024" conference in August 2024 the current tax system's adverse impact on individual investors. He emphasized that the tax treatment of individual investors' crypto asset gains should be changed to a separate declaration taxation similar to financial income at 20%. If this reform is implemented, it will not only relieve the burden on individual investors but also help stimulate the domestic market.
As the discussion on tax reform progresses, the government and the Financial Services Agency's movements are being closely watched. According to various reports, the relevant discussions are steadily advancing. If the tax system reform for individual investors is finally implemented, it is expected to broaden the domestic retail investor base and drive overall growth in the crypto asset market.
Shift in the Financial Services Agency's Regulatory Stance
Image Source: ShutterStock
Previously, the Financial Services Agency had enforced strict regulations on crypto assets citing investor protection. However, in 2024, there was a shift in its regulatory stance. The Financial Services Agency is studying the inclusion of crypto assets under the "Financial Instruments and Exchange Act." This move indicates that crypto assets may be redefined legally as "financial instruments." If this classification is achieved, it may bring about the following key changes:
· Acceleration of Tax Reform
Considering crypto assets as financial instruments may drive further tax system improvements, thereby reducing the tax burden on individual investors and companies.
· Discussion on Bitcoin ETF Introduction
The reclassification will pave the way for financial products involving crypto assets, making the introduction of a Bitcoin ETF more feasible. This will promote the integration of the traditional financial market with the crypto asset market, attracting more individual and institutional investors.
Additionally, the Financial Services Agency is also exploring relaxing regulations on in-game token usage to provide a more favorable environment for game companies to flexibly utilize tokens. These policy changes may drive growth in crypto asset-related businesses, boosting the Japanese Web3 industry's greater advantage in international competition.
1-3. Business Opportunity Expansion under the New Legal System
Allowance of Limited Liability Company DAO Establishment
On April 22, 2024, Japan officially allowed the establishment of Limited Liability Company (LLC) structured DAOs (Decentralized Autonomous Organizations). This legal amendment granted DAOs formal legal entity status in Japan, enabling them to operate as contracting parties and own assets such as real estate. This proposal originated from the Liberal Democratic Party's "Web3 Whitepaper 2023" released in 2023, and it was rapidly realized, drawing broad attention from the domestic and international blockchain industry.
During the establishment of a Limited Liability Company DAO, several legal challenges were faced, with the two most significant issues being "handling of employee rights tokens" and "obligation to disclose employee information." Regarding the "handling of employee rights tokens," this regulatory reform recognizes a portion of the DAO's issued tokens as "non-profit distribution tokens" or "tokens held by executing employees" and treats them as the second category of securities under the Financial Instruments and Exchange Act. Regarding the "obligation to disclose employee information," the new system allows the DAO not to disclose employee information.
The establishment of a Limited Liability Company DAO has opened up a wide range of applications, including local revitalization projects and community-led projects in the sports and entertainment sectors.
Legal Amendment Allowing LPS to Invest in Cryptographic Assets Receives Cabinet Approval
In February 2024, the Japanese Ministry of Economy, Trade, and Industry passed a legal amendment allowing Limited Partnership (LPS) to hold cryptographic assets. This amendment enables LPS, which traditionally primarily invested in stocks, bonds, and other traditional financial products, to invest in and hold cryptographic assets.
Prior to this, Japanese LPS could not contribute to cryptographic assets, leading to domestic Web3 projects relying on overseas venture capital (VC) for fundraising. This legal amendment is expected to promote source diversification of funds and activate the domestic market.
The amendment is currently under parliamentary review, and if it passes smoothly, it is expected that from 2025, domestic venture capital will officially start investing in tokens.
1-4. Practices of Local Public Entities in Web3 Applications: Initiatives in Tokyo and Osaka
In Japan, utilizing Web3 technology to promote local revitalization is actively being explored. Many cities have implemented unique initiatives at the local level. Here is a brief introduction to some of the practices in Tokyo and Osaka as of 2024.
Tokyo - Emerging Examples
Image Source: FC Tokyo Official Website
Tokyo is advancing local regional revitalization using Web3 technology.
In the "Hometown Tax Return Gift NFT Project" in collaboration with FC Tokyo in Mitaka City, by offering limited edition NFT digital art in collaboration with FC Tokyo as a hometown tax return gift, a new form of donation has been innovated. Sports fans and local residents can support Mitaka City while also enjoying the fun of NFTs.
On the other hand, the "Aoshima DAO Project" is dedicated to DAO-ifying Aoshima, an outlying island of Tokyo. It emphasizes residents' opinions and participation, aiming to operate regional affairs in a community-driven manner and explore the future of resource utilization and sustainable development.
Furthermore, in Odomari City, to protect tourism resources, a token-based crowdfunding approach has been adopted. By issuing tokens to raise funds, the funds are used for the opening of traditional Japanese restaurants and inns. In this way, people interested in regional revitalization can participate through financial support.
These practical examples clearly demonstrate that Web3 has brought new value to local communities.
Osaka - World Expo Boosting Digital Social Development
Osaka Prefecture, which will host the World Expo in 2025, is promoting the innovative application of Web3 technology with the "EXPO 2025 Digital Wallet" at its core. This digital wallet can be used for cashless payments, NFT acquisition, and point rewards, aiming to provide a diverse experience for the World Expo venue and related facilities, achieving a cashless World Expo in Osaka.
Based on this platform, a digital stamp NFT event around dining establishments near the Expo venue was launched in April 2024. Users can collect digital stamps from visited dining establishments and enjoy the fun of stamp collecting.
In addition, the Osaka City Museum Consortium also plans to launch a digital stamp NFT activity based on NFTs starting in November 2024 to enhance the museum visiting experience using digital technology in preparation for the World Expo.
Simultaneously, Habikino City in Osaka Prefecture will be the first in the Kinki region to introduce the sale of "Digital Resident Card NFT" in October 2024. Purchasers can enjoy free services and discount benefits at BBQ restaurants and experiential facilities in the city.
Seizing the opportunity of the World Expo, Osaka Prefecture is actively leveraging Web3 technology to achieve further development in regional revitalization and the digital society.
2. Corporate News
2-1. Financial Industry Updates
Sony Bank: Initiating Various Web3 Technology Application Initiatives
In 2024, Sony Bank announced a series of Web3 technology-based initiatives, outlining its policy to promote the integration of finance and entertainment. In April, Sony Bank launched digital securities development based on entertainment IP (Intellectual Property). Through this plan, content such as music, movies, and games can be issued as asset-backed digital securities, providing users with new financial product choices. In addition, Sony Bank has also started a pilot project for issuing stablecoins based on fiat currency, developing blockchain wallet technology to expand the application scenarios of the Web3 economy.
In July of the same year, Sony Bank released the application "Sony Bank CONNECT" for Web3 entertainment. This application is linked to the NFT marketplace "SNFT" operated by the Sony Group, allowing users to view and manage their NFT collections. The app provides a feature to display NFTs on the main screen and supports showcasing NFTs in the 3D gallery "Rooms," further enhancing the entertainment experience.
Image Source: New service name Sony Bank CONNECT decided to release a web3 entertainment app in the summer of 2024
These initiatives fully leverage Sony Group's strengths in the entertainment industry while exploring the potential of Web3. Sony Bank, through Web3 technology, aims to go beyond traditional financial services, creating an integrated "Finance x Entertainment" complex industry for individual users, demonstrating a new service and value vision.
2-2. Dynamics in the Gaming Industry
Sony: Officially Entering Web3, Drawing Domestic and International Attention
The overall focus of the Japanese Web3 industry is Sony Group's joint venture company with Startale, "Sony Block Solutions Labs," which launched the Layer 2 blockchain "Soneium." Founded in September 2023, this company combined Sony and Startale's technical capabilities to jointly develop a public blockchain aimed at providing a convenient platform that integrates Web2 and Web3 to drive blockchain mass adoption.
Soneium not only focuses on providing Web3 solutions but also strengthens integration with Sony's existing businesses and support for creators, aiming to build a mechanism core to rights protection and benefit sharing. This release has driven the active development of related projects. In August 2024, YGG Japan announced the launch of the game-specific Layer 3 chain "YAIBA" connected to Soneium to support the environment needed for Web3 game development.
Square Enix: Partnering with SuiPlay
At the Korea Blockchain Week held in September 2024, Sui development company Mysten Labs surprised attendees by announcing its portable Web3 gaming platform "SuiPlay" had entered into a partnership with the Japanese gaming giant Square Enix. SuiPlay utilizes sleek and highly scalable blockchain technology to provide a platform that seamlessly integrates traditional game development with Web3. While the specific details of the partnership have not been disclosed, this move showcases the potential of Web3 in the traditional gaming market, attracting attention from the entire industry.
double jump.tokyo: New "Romance of the Three Kingdoms" Series Developed Utilizing SEGA IP
Image Source: double jump.tokyo adopts a new blockchain game based on SEGA's "Romance of the Three Kingdoms" IP utilizing AltLayer's L2 blockchain "SG Verse"
At the Tokyo Game Show 2024, double jump.tokyo announced that they are actively developing a new blockchain game titled "Kai: Romance of the Three Kingdoms - Battle of Three Kingdoms" based on SEGA's licensed IP. This game, built on NFT technology, aims to deliver a fresh gaming experience to players.
2-3. Real Estate Industry Trends
NOT A HOTEL: Raises ¥5.5 Billion to Expand Business Footprint
Image Source: X
In the real estate industry, the innovative NFT-focused company "NOT A HOTEL" has garnered widespread attention. The company's core business model revolves around shared villas, where users can purchase the entire property or buy on a shared ownership basis for either 10 days or 30 days per year.
In 2024, NOT A HOTEL successfully raised approximately ¥5.5 billion and plans to expand new locations domestically and internationally, especially in tourist destinations and resort areas to attract foreign investors and visitors.
Image Source: NOT A HOTEL COIN, Japan's first IEO* with Real World Assets (RWA), open for purchase applications starting October 31st. Whitepaper and new website also launched simultaneously today
Additionally, in October of the same year, the company launched its native token "NAC" through an IEO. NAC holders can use the token for accommodation booking and rental, and earn accommodation rights as rewards through the token. Furthermore, by participating in the "NOT A HOTEL DAO," users can also take part in site selection and operational policy decisions. NAC is seen as a key pillar supporting a user-participatory ecosystem.
2-4. Dynamics of the Transportation Industry
Toyota Blockchain Lab: Exploring the Tokenization of Car Usage Rights through "Smart Accounts"
In 2024, the Toyota Blockchain Lab (TBL) unveiled a concept: tokenizing rights associated with cars and managing them through "smart accounts" to connect various car services.
These smart accounts differ from traditional accounts as they utilize an Ethereum-based ERC-4337 "Mobile-Oriented Account (MOA)." The MOA abstracts the account from the authentication process, separating it from key management, so even if a user inadvertently loses their private key, the account itself remains intact, providing a more secure and flexible account management approach.
Users can perform operations such as unlocking via a smartphone application. Through this method, users can freely allocate different operation permissions. For example, they can grant full operational access, or set permissions only for unlocking and locking the trunk, with an attached expiration date. Moreover, this digitized car-usage rights management approach is expected to facilitate the realization of services like car-sharing.
In April 2023, Toyota released the "Toyota Mobility Concept." The final stage of this concept, "Mobility 3.0," aims to integrate mobile travel with the societal system. The smart account concept is also considered part of this plan, emphasizing public blockchains as a potential key option to realize the Toyota Mobility Concept.
KINTO: Issuing NFT Certification to Safe Driving Drivers
KINTO, in collaboration with Toyota, initiated a pilot test. The main content of the pilot test involves collecting vehicle driving data for analysis, identifying safe-driving drivers, and issuing non-transferable NFTs known as "Soul-Bound Tokens (SBT)" to those certified as safe drivers. This is the transportation industry's first attempt to leverage blockchain technology to permanently record certification of safe driving. In the future, there are plans to build a mechanism for more cost-effective related transportation services based on these certifications. This initiative is expected to promote safe driving and drive the development of the transportation and travel society.
2-5. Power Industry Trends
Tokyo Electric Power Grid: Launches Mobile Game App Trial for Power Infrastructure Photography
Image Source: PicTrée X Official Account
The Tokyo Electric Power Grid, in collaboration with Greenway Grid Global and Digital Entertainment Asset, has launched a game app trial called "PicTrée." Through this app, users can take photos of electric poles and power infrastructure and engage in battles. This not only provides entertainment to users but also aims to improve regional infrastructure maintenance and early detection of equipment abnormalities through the game, creating value for society.
2-6. Environmental Industry Trends
Klima DAO Japan: Initiates Carbon Credit Trading for ReFi Project in Japan
Image Source: Establishment of KlimaDAO's Japan Entity "KlimaDAO JAPAN": Transforming Climate Change Measures with Web3 Blockchain
In 2024, Klima DAO established its Japan entity, "KlimaDAO Japan," and has been developing a market platform for the tokenization of public carbon credit units known as "J-Credit." In April, a platform suitable for Japanese citizens and corporations was launched, creating new opportunities for greenhouse gas emissions reduction.
On November 19, the company initiated a trial of the "KlimaDAO JAPAN MARKET," tokenizing J-Credit using the Polygon blockchain to enhance transaction liquidity and transparency. Several companies, including the Sumitomo Financial Group and Optage, participated in this trial, which is expected to be opened to the public in spring 2025. These initiatives aim to address issues in the Japanese carbon credit market, contribute to climate change mitigation, and have garnered widespread attention.
2-7. Communication Industry Trends
NTT Docomo: Launches Web3-Compatible Wallet
Image Source: Minna no Digital Wallet scramberry WALLET Launch
NTT Docomo, through its Web3 subsidiary established by 2022, "NTT Digital," has launched the Web3-compatible wallet "scramberry WALLET." Users can easily register with just their phone number, and the wallet data is stored in the cloud with a backup function for easy recovery. Its security features include the ability to filter small amounts of encrypted assets and NFTs, significantly enhancing security.
KDDI: Partnership with Animoca Brands
Image Source: Animoca Brands Japan and KDDI Commence Business Collaboration in the Web3 Field
KDDI has partnered with Animoca Brands' Japanese subsidiary (Animoca Brands Japan) to sell NFTs of the blockchain game "PHANTOM GALAXIES" on KDDI's NFT marketplace platform, "αU market," in March 2024. This collaboration strengthens the connection between the telecommunications industry and Web3, creating a new business model using NFTs.
2-8. Food Industry Trends
Suntory: Combining NFT with Beer
Image Source: Suntory Releases Beer with NFT ── Adopts Avalanche Blockchain
Suntory has utilized Avalanche technology to launch the beer "THE PREMIUM MALT'S Masters Dream
Calbee Food Company: Introducing the "Potato Fry Brothers" and "Shrimp Fry (Kappa Ebisen)" to a Popular Web3 Game!
Image Source: First Attempt by a Domestic Food Manufacturer
Calbee Food Company has announced its first collaboration with a Web3 game as a domestic food manufacturer. NFT items themed around the company's popular products "JagaRico" and "Kappa Ebisen" will be gradually introduced in three Web3 games: "CryptoSpells," "JobTribes," and "HEAL-III." Through this initiative, a new form of fan interaction that merges virtual and real worlds is proposed. Additionally, leveraging game interoperability, activities to enhance interaction and cooperation will be carried out at the "WEB3 GAME FES."
2-9. Watch and Apparel Industry Update
Casio Computer: Launches "VIRTUAL G-SHOCK" and Collaborates with "STEPN GO"
Image Source: X
Casio is actively promoting its market to Web3 users through the virtual space communication project "VIRTUAL G-SHOCK." This project has partnered with the Web3 lifestyle app "STEPN GO," strengthening its connection with younger users centered around the Z generation. This move showcases the potential of Web3 in the watch and apparel industry and serves as a model for digital-era brand strategies.
3. Individual Users and Retail Investors Update
3-1. Trends in Domestic Exchange Account Openings
According to on-chain data estimates, the number of account openings at Japanese domestic cryptocurrency exchanges continued to show a growth trend in 2024.
Image: Dune
Using the Dune Analytics dashboard, the unique wallet count of external wallet addresses received by major exchanges (Coincheck, bitbank, bitFlyer) was calculated. On-chain data shows that in January 2024, these three exchanges collectively had 356,917 unique wallets, which increased to 408,039 by November 2024.
Based on this data analysis, if the unique wallet count of external wallet addresses is considered to be 20% of the total account count, and assuming these three exchanges hold a 60% market share, it can be estimated that the total number of domestic exchange accounts in November 2024 will be approximately 3.4 million.
Likewise, if we calculate the account total for January 2024, it is around 2.97 million. Therefore, the projected number of new accounts in 2024 is expected to reach 426,000. Although there are still two months left in 2024 at the time of estimation, the growth rate is consistent with previous years, indicating a steady increase in the number of domestic exchange accounts. It is expected that the number of individual investors holding crypto assets will continue to grow in the future.
3-2. Highlighted Japanese Web3 Projects in 2024
SNPIT
Image Source: What is the charm of the blockchain game "SNPIT" that can be started for free and can earn money just by taking pictures? Many families enjoy it.
In 2024, the photography-themed unique GameFi model "SNPIT" has attracted widespread attention. Players hold camera NFTs within the application, take photos with their smartphones, and earn token rewards through voting. This mechanism cleverly combines social network (SNS) elements, successfully fostering community interaction. At the same time, by using NFTs to provide shooting props, it has attracted both creators and collectors, forming a well-received economic model. "SNPIT" as a representative XX of "mobile app × Web3 game" showcases new possibilities.
CoinMusume (幣娘)
Image Source: Blockchain game "CoinMusume" announces release on November 22 and holds a release celebration gacha event! The development roadmap after the game release has been revealed!
"CoinMusume" is a blockchain game that personifies cryptocurrencies into idol characters and was released in December 2024. Players can engage in non-real-time battles through characters, predict cryptocurrency market trends based on their scores, and earn tokens based on the outcomes. Before the game's release, the project actively engaged in marketing activities, collaborating with various Web3 projects such as the game guild enterprise "IGG," the platform providing a virtual world "Yay!," and the Japanese yen stablecoin provider "JPYC," garnering widespread attention.
Briliantcryto
Image Source: Briliantcryto Official
In 2024, Japan launched the GameFi project "Briliantcrypto," which gained attention for its gem and jewel mining theme. Players mine the BRIL token and use it to purchase items like pickaxes or gems as NFTs to enhance in-game efficiency and enjoy the upgrade experience. The project conducted an IEO on the major Japanese cryptocurrency exchange Coincheck, sparking discussions among retail investors and becoming a hot topic among GameFi enthusiasts. "Briliantcrypto" stands as one of the representative works in the 2024 Japanese GameFi space.
Yay!
Image Source: Yay!, Overview of Web3 Features and Airdrop Site Open from August 28, Staking to Start
The social app "Yay!" accelerated its expansion into the Web3 space in 2024, attracting significant attention. This platform with over 9 million users provides a community space for sharing hobbies and interests. Particularly, the "Yay! Staking Event" launched in August became a crucial step in strengthening the Web3 ecosystem. Users can stake Ethereum to receive the NFT "Yay! Pal" for in-game use and earn the utility token "EMPL." This mechanism has enticed Web2 users to participate, driving the expected mass adoption. Additionally, decision-making through the governance token "YAY" and collaboration with the liquidity staking protocol "StakeStone" have offered diverse rewards, making the new tokenomics model a hot topic.
FiNANCiE
Image Source: Birth of the 'Horie Token'.
FiNANCiE is a platform that allows anyone to issue unique tokens or collectible cards. In January, the well-known Japanese internet celebrity Ikehaya issued their character IP token on the FiNANCiE platform, attracting a large number of domestic internet celebrities to issue their own corporate or community tokens. Notably in 2024, business domain celebrities such as Takafumi Horie and entrepreneurs involved in the YouTube program "Reiwa no Tora" issued their tokens on FiNANCiE, becoming a major highlight.
3-3. Mainstream Media Used for Personal User Information Acquisition
By 2024, the main media used by individual users in Japan to acquire information about cryptocurrency assets exhibit the following characteristics: X (formerly Twitter) with high real-time relevance has become a primary platform for many users to obtain news and market dynamics. While YouTube remains a popular media outlet, the decrease in cryptocurrency-related channels has resulted in a lower quantity and quality of information.
Furthermore, an increasing number of investment enthusiasts are utilizing Discord and Telegram as platforms for discussing in-depth topics and exchanging professional information.
In terms of professional media, CoinPost, CoinDesk Japan, and Cointelegraph Japan are widely popular for providing highly credible information on industry trends, technical insights, and regulatory updates. These media outlets have become the primary sources of information for everyone from beginners to advanced investors, serving as vital resources in the cryptocurrency market.
3-4. Prominent Cryptocurrency Influencers in Japan
ADMEN
X has 53,000 followers. Serves as the Chief Marketing Officer (CMO) of Japan's prominent crypto community "boarding bridge." Also the CMO (Chief Memecoin Officer) of Japan's renowned media CRYPTO TIMES, possessing top-tier expertise in the MEME coin information domain.
Noroi-chan
X has 20,000 followers. Shares anecdotes of Web3 games through platforms such as X and YouTube. Also founded a company, GAMIES Inc., that supports Web3 game marketing.
MA-LUCIAN
X has 88,000 followers. Shares a wide range of information related to cryptocurrency from gaming to DeFi. Co-founder of Japan's well-known crypto community "OtakuLabs."
taka__crypto
X has 20,000 followers. Operating AirdropList, a network media providing curated cryptocurrency (crypto asset) airdrop information. They conduct daily research on global DeFi projects and provide detailed explanations in a simple and understandable way for beginners.
Bankera Dao
X has 30,000 followers. Through X and their media operation, they publish selected cryptocurrency airdrop information and the latest news.
Ratte
X has over 300,000 followers. They are the founder of Japan's largest Web3 influencer community, ISC. Having previously served as a producer of Web2 mobile games in a large Japanese corporation and achieving the 3rd position in Japan's sales ranking, they apply their Web2 expertise to Web3 marketing, attracting much attention.
Summary: Challenges and Potential of Japan's Web3 Industry
Looking back at Japan's Web3 industry in 2024, there are both bright spots in development and numerous challenges. While the improvement of the regulatory system and the emergence of new projects are encouraging, the high entry barriers for individual investors and the lack of globally renowned Web3 projects remain pressing issues.
In particular, the lack of vitality in the cryptocurrency market and the harsh tax system are seen as core factors inhibiting market growth. Compared to South Korea, which stimulates retail market activity through tax incentives, Japan's lag in tax reform has led to a significant missed opportunity. Tax reform is a key area for enhancing global competitiveness and requires prompt action.
Furthermore, there is still a lack of deep understanding among businesses regarding the commercialization of blockchain applications. While this field is seen as full of innovative potential, many companies are unsure how to translate it into business value. This has led some companies to approach entry into the Web3 space with caution.
Inadequate technological competitiveness is also a major challenge. Japan still lacks Web3 projects with international influence on a global scale. To secure a position in the international market, the industry needs to collaboratively promote developer training and support.
Nevertheless, the author still sees Japan as full of possibilities. With the improvement of the regulatory system, advancing regional revitalization projects and corporate challenges, the 2025 Osaka World Expo will be an excellent opportunity to showcase these achievements to the world and a good time for the overall expansion of Japan's Web3 market.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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