Japan's cryptocurrency market exhibits unique characteristics in regulation, investment, and innovation. From risk aversion to tax policies, all aspects are working to promote the industry's development. The regulation is strict yet proactive, providing a relatively stable environment for entrepreneurs and investors. However, high tax burdens and lengthy approval processes remain major challenges for the industry's development.

This year, Japan has introduced two proposals or regulations related to cryptocurrency. In April, the ruling party's Web 3.0 project team released a white paper proposing measures to promote the development of Japan's cryptocurrency industry; in June, the "Revised Bill on the Fund Settlement Act" was passed in the House of Councillors, making Japan the first country in the world to enact a stablecoin law.