Fireblocks settled in Tokyo, optimistic about tax reform and technological innovation, will Japan become an industry leader?

Set up office in Tokyo, attracting attention from the blockchain industry

Blockchain infrastructure provider Fireblocks recently announced the establishment of a regional office in Tokyo, officially launching its localization layout in Japan. This move highlights its intention to expand into the Asia-Pacific market and echoes the Japanese government's policy orientation of actively promoting virtual currencies and Web3 in recent years. Fireblocks, in a blog statement, cited data from IMARC Group that the Japanese crypto market is growing rapidly, with an expected growth rate of 54% from 2024 to 2032. Therefore, it will provide security technology solutions tailored to local needs, such as Wallet-as-a-Service and Multi-Party Computation (MPC), through new locations.

Fireblocks also emphasized that having the cold wallet supply qualification approved by the Japan Financial Services Agency (JFSA) is one of their advantages to enter the Japanese market. The company will expand its sales and product team in 2025 and introduce bilingual services to better assist traditional Japanese enterprises and startups in digital asset management, token issuance, and payment scene layout.

Fireblocks CEO Michael Shaulov stated that Japan's deep tradition of innovation and rigorous technical culture are making it a leader in the development of blockchain and Web3. They hope to help Japanese enterprises securely and on a large scale apply blockchain technology in a more localized manner.

Tax reform is beneficial, and new cooperation emerges

It is worth noting that Fireblocks' entry into Tokyo coincides with Japan's recent push for cryptocurrency tax reform. The reform, proposed by Japan's opposition party, the Democratic Party for the People, aims to lower the tax rate on cryptocurrency assets and raise the tax-free threshold, hoping to promote the development of the cryptocurrency industry and encourage innovation. In the past, Japanese investors have complained about high tax rates, leading to some trading moving overseas. Now, tax optimization is expected to drive more vibrant digital asset trading and new project investment. Fireblocks believes that if Japan can successfully implement friendly regulations and policies, combined with the globally renowned potential for technological innovation, it may become a stronger hub for blockchain applications in the coming years.

Further reading Japan's cryptocurrency tax reform questioned by Shigeru Ishiba! Opposition party angrily retorts: What happened to the promised Web3 national strategy? Shi Po Mao promotes tax reform! The tax on cryptocurrency assets will be reduced to 20%, will it make Japan's digital economy rise? Elected and tax reduced to 20%! Leader of the Japanese Democratic Party proposes cryptocurrency tax reform, four key points at a glance Please provide the text to be translated. Fireblocks also plans to cooperate with multiple Japanese companies and Web3 industry pioneers, such as infrastructure development company Startale Labs (the team behind Astar Network), Web3 gaming platform Oasys, and cryptocurrency exchange CoinTrade. Such cross-industry collaborations not only strengthen Fireblocks' local ecosystem connections, but also contribute to the overall upgrade of the Japanese crypto ecosystem, driving a new wave of technology and capital infusion. It is widely believed in the industry that the collaborative development model between overseas companies and local teams is expected to promote greater breakthroughs in Japan's blockchain, NFT, stablecoin, and tokenization of physical assets industries.

Is Japan expected to become a leader in blockchain technology?

In recent years, the Japanese government has repeatedly called for the 'Web3 Year' and emphasized the goal of making Tokyo a hub for blockchain and crypto innovation. In addition to tax reform, the Financial Services Agency has also actively introduced clearer guidelines for virtual asset regulation, forming a competitive position with Hong Kong, Singapore, and other regions as the center of the crypto industry in the Asia-Pacific region.

Fireblocks CEO Shaulov said: "Japan's strong culture of innovation and technological strength make it a leader in Web3 - and we will take root here to help companies use blockchain steadily and on a large scale."

To be frank, there are still many challenges for Japan to truly achieve this vision. The market is still highly concerned about the country's subsequent regulatory details, supporting regulations, and the degree of improvement in the investment environment. Nevertheless, with the entry of international blockchain companies such as Fireblocks, coupled with the introduction of new tax systems and enhanced regulatory transparency, Japan has shown its ambition to the world: it will no longer just be a 'cryptocurrency pioneer', but will also make substantial reforms and innovations to become an important hub for the next generation of digital finance.

[Disclaimer] There is risk in the market, and investment should be cautious. This article does not constitute investment advice, users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.

'Fireblocks enters Tokyo, optimistic about tax reform and technological innovation, will Japan become an industry leader?' This article was first published in 'Crypto City'.