Japan PM Reaffirms Support for Startups, Web3 With Deregulation and More Funding

Japan is reinforcing its commitment to becoming a global hub for startups and Web3 innovation, with Prime Minister Sanae Takaichi reaffirming the government’s support for entrepreneurs, blockchain technology and regulatory reform during a video address at WebX 2026 in Tokyo.

Speaking to thousands of founders, investors and industry leaders, Takaichi framed Web3 as a key part of Japan’s broader innovation strategy rather than a standalone cryptocurrency initiative. She said government policy, together with industry events like WebX, can help startups connect with investors, develop new technologies and build commercial partnerships.

The remarks underscore Japan’s continued push to foster innovation through greater access to funding, regulatory modernization and stronger collaboration between the public and private sectors. While the prime minister did not announce new grants or immediate policy changes, her speech reaffirmed the government’s long-term roadmap for strengthening the country’s startup ecosystem.

Japan PM Sanae Takaichi Reaffirms Startup and Web3 Support at WebX 2026

Web3 seen as a driver of innovation

Addressing attendees virtually, Takaichi described WebX as an important meeting place where startups, corporations and investors can exchange ideas and turn blockchain technology into practical business applications.

“The conference provides a platform to create business collaboration,” she said, according to CoinPost.

Rather than focusing solely on cryptocurrencies, the prime minister highlighted Web3’s potential across industries, including digital finance, supply chains, identity verification and enterprise services. Her comments reflect Japan’s broader approach of integrating blockchain into national economic policy instead of treating it as a niche financial sector.

Organizers expect roughly 15,000 participants at WebX 2026, making it one of Asia’s largest gatherings dedicated to blockchain and digital assets. The conference brings together policymakers, venture capital firms, financial institutions and developers to discuss emerging technologies ranging from decentralized finance (DeFi) to tokenized assets and artificial intelligence.

Startup funding remains a government priority

Takaichi also highlighted Japan’s Comprehensive Startup Support Package, introduced in 2025 to strengthen the country’s Five-Year Startup Development Plan, first launched in 2022.

The strategy aims to increase annual startup investment to approximately 10 trillion yen by fiscal 2027, while positioning Japan as one of Asia’s leading startup ecosystems.

Longer-term government goals include creating 100 unicorn companies and supporting the growth of 100,000 startups nationwide.

The support package seeks to expand access to capital through government-backed investment funds and financial institutions while easing regulations that can slow the growth of young companies. It also encourages partnerships between startups and established corporations, strengthens founder networks and improves opportunities for businesses to scale domestically and internationally.

Although the government has not released implementation timelines for every measure, officials view startup development as a critical pillar of Japan’s long-term economic competitiveness.

Japan PM Sanae Takaichi

Crypto reforms continue alongside startup policies

Japan is also moving forward with broader reforms affecting digital assets.

Lawmakers have been advancing legislation that could reduce the tax rate on crypto gains to 20%, bringing digital asset taxation closer to the treatment of stocks and other financial investments. The proposed framework could also establish a legal pathway for domestic cryptocurrency exchange-traded funds (ETFs).

The reforms have not yet been enacted, with tax-related provisions expected to take effect in 2028 if approved. Nevertheless, they represent one of Japan’s most significant efforts in recent years to modernize its crypto regulatory framework and improve the country’s competitiveness within the global digital asset industry. 

A lower tax burden and clearer investment rules could make Japan more attractive to blockchain startups, institutional investors and developers seeking a stable regulatory environment.

Private initiatives add momentum

Government programs are increasingly being complemented by private-sector investment.

Earlier this year, Ripple partnered with Web3 Salon to launch grants of up to $200,000 for Japanese startups building applications on the XRP Ledger. The initiative focuses on payments, tokenized real-world assets and decentralized finance, while receiving support from the Japan External Trade Organization (JETRO).

Although the grant program operates independently from the government’s startup package, it reflects growing cooperation between public agencies and private companies working to accelerate blockchain innovation in Japan.

For many early-stage startups, access to funding, enterprise partnerships and regulatory guidance remains just as important as technical development.

A consistent policy direction

Takaichi’s appearance at WebX continues a pattern established by previous Japanese leaders.

Former Prime Minister Fumio Kishida addressed WebX in 2024, describing blockchain as an important component of Japan’s digital transformation strategy. In 2025, former Prime Minister Shigeru Ishiba attended the conference in person, voicing support for continued investment and regulatory reform surrounding both Web3 and artificial intelligence.

The repeated participation of Japan’s top political leaders suggests that support for blockchain innovation has become part of a broader national economic agenda rather than a temporary policy initiative.

While keynote speeches do not automatically result in new legislation, they provide important signals to entrepreneurs and investors about the government’s long-term priorities.

Takaichi concluded that government initiatives and industry collaboration can help create new businesses and strengthen Japan’s innovation ecosystem. Whether those ambitions translate into greater investment, successful startups and wider adoption of blockchain technology will depend on how effectively ministries, regulators and financial institutions implement the policies already underway.