The JCBA's Fiscal Year 2024 Business Report
The Japan Cryptoasset Business Association (JCBA) has presented its business report for Fiscal Year 2024 (from April 2024 to March 2025), a period marked by significant transformation and strategic advancement for both the global and domestic digital asset industries. The report (in Japanese) details the association's extensive activities in policy advocacy, member support, international collaboration, and public awareness, positioning the JCBA as a central force in shaping the future of Japan's web3 ecosystem.
I. General Overview: Navigating a Shifting Landscape
The report opens by contextualizing its activities within a dynamic global environment. It identifies several key catalysts that propelled the crypto-asset market to new heights during the fiscal year: the landmark approval of spot Bitcoin and Ethereum ETFs in the United States, the anticipated Bitcoin halving, a global pivot toward monetary easing amid receding inflation, and the rise of a pro-crypto political narrative in the U.S. presidential election. These factors contributed to Bitcoin surpassing the $100,000 milestone and broadened the market's participant base from a predominantly retail-focused one to include major corporations, institutional investors, and even nation-states.
In contrast, Japan's domestic market faced a mixed reality. While grappling with a significant crypto-asset outflow incident at a domestic exchange, a clear and positive regulatory evolution began to take shape. A foundational shift in discourse emerged, moving away from viewing crypto-assets solely through the lens of the Payment Services Act (PSA) and toward recognizing them under the Financial Instruments and Exchange Act (FIEA). This potential re-categorization signals a major maturation of the regulatory framework, opening the door for future developments such as the creation of domestic crypto ETFs, the implementation of a more favorable separate taxation regime for individuals, and the relaxation of leverage limits on margin trading. The report frames this shift as the beginning of a visible path toward the revitalization of Japan's crypto-asset market.
Against this backdrop, the JCBA leveraged its long-standing policy work, which has been ongoing since 2018. A principal achievement of the year was the successful advocacy by its "web3 Business Rules Task Force." This group's efforts culminated in a Cabinet decision to revise the Limited Partnership Act for Investment (LPS Act), a critical change that now permits investment funds (LPS) to directly invest in crypto-assets and electronic payment instruments issued by startups. This removes a significant barrier to venture capital funding in the Japanese web3 space. Furthermore, the association's work contributed to a legislative bill, submitted to the Diet, that establishes a new license for "Electronic Payment Instrument and Crypto-Asset Service Intermediaries," clarifying the rules for businesses that facilitate crypto transactions without taking custody of assets.
The JCBA's tangible outputs for the year were numerous and impactful. They included the "2025 Tax Reform Proposal," a comprehensive document advocating for a more competitive tax environment. On the frontier of asset tokenization, the association published "Key Regulatory Considerations for Issuing RWA Tokens" and, following a commission from the Ministry of Economy, Trade and Industry (METI), released a detailed "Guideline for the Utilization of RWA (Real World Asset) Tokens." They also updated their foundational "NFT Business Guideline" to its third edition to keep pace with the rapidly evolving sector.
The report identifies the association's most pressing and ongoing priority: responding to the Financial Services Agency's (FSA) comprehensive "Re-examination of the Crypto-Asset System." The JCBA has established a dedicated, multi-layered task force—comprising a core working team, the board of directors, and various subcommittees—to consolidate industry opinion, formulate cohesive policy recommendations, and engage in constructive dialogue with regulators.
II. External Activities, Advocacy, and International Engagement
The JCBA's influence was significantly amplified through its proactive external engagement, which spanned political lobbying, industry collaboration, and a strengthened international presence.
A cornerstone of its public activity was a series of high-profile events. The "JCBA Meetup Summer 2024," held as a side event to the WebX conference, underscored the association's political access, drawing attendance from prominent lawmakers such as Satsuki Katayama, Masaaki Taira, and Junichi Kanda, as well as senior officials from the FSA and METI. Collaboration with the Fintech Association of Japan (FAJ) and a joint forum with the Japanese Institute of Certified Public Accountants (JICPA) and the Japan Virtual and Crypto assets Exchange Association (JVCEA) highlighted the JCBA's role as a cross-industry convener, particularly in tackling complex issues like the auditing of web3 businesses.
International outreach became a strategic focus. The JCBA launched an English-language LinkedIn account to improve global communication, and its staff actively participated as speakers at major international conferences, including Blockchain Week Australia, IVS Crypto Kyoto, Korea Blockchain Week, and the Future Blockchain Summit in Dubai. This global push was formalized through the signing of Memorandums of Understanding (MOU) with the U.S.-based Crypto Council for Innovation (CCI) and the Digital Economy Council of Australia (DECA), establishing frameworks for information sharing and collaboration on global policy trends. This was further exemplified by the "Digital Assets Night" co-hosted with CoinDesk Japan during Japan Fintech Week. Conducted entirely in English, the event attracted over 100 on-site attendees from around the world, solidifying the JCBA's ambition to position Japan as a global web3 hub.
Direct engagement with Japanese policymakers remained a core function. JCBA representatives held numerous meetings with lawmakers and actively participated in critical government forums. The association was granted observer status in the FSA's "Working Group on Payment Services Systems," providing direct input on regulatory design. They presented their "2025 Tax Reform Proposal" before the Liberal Democratic Party's (LDP) policy council and, alongside JVCEA, briefed the LDP's Digital Society Promotion Headquarters and Financial Affairs Research Commission on industry-wide security measures and the evolving crypto-asset landscape. This sustained, high-level advocacy ensures the industry's voice is a key component of the national policy-making process.
III. Subcommittee and Working Group Activities: The Engine of Policy Development
The detailed work of the JCBA's various subcommittees and working groups forms the foundation of its policy achievements.
The Finance Subcommittee made significant strides on two fronts. It continued its advocacy for revised leverage ratios in margin trading and played a pivotal role in advancing the discussion around domestic crypto ETFs. The subcommittee's research and proposals were reflected in the LDP's web3PT White Paper 2024, which in turn spurred the formation of a cross-industry "Domestic Crypto Asset ETF Study Group." This group, with JCBA member participation, has since published a formal proposal, marking a critical step toward the integration of crypto-assets into mainstream Japanese finance.
The Tax Reform Subcommittee formalized its long-standing efforts by submitting the "2025 Tax Reform Proposal" to the government. Its key demands—a 20% separate self-assessment tax rate (on par with stock trading), a three-year carry-forward of losses, and aligned treatment for derivatives and donations—were systematically presented to lawmakers and relevant government bodies, aiming to rectify a tax regime widely seen as a hindrance to growth.
The NFT Subcommittee was highly productive, reflecting the rapid expansion of the sector. In April, it released a paper on "Key Regulatory Considerations for Issuing RWA Tokens," providing much-needed clarity for businesses. This was followed in August by the "NFT Business Guideline Version 3.0," a comprehensive update incorporating recent developments such as rules on random-draw "gacha-style" NFT sales, the FSA's revised guidance on crypto-asset applicability, and the National Tax Agency's FAQ on NFT taxation.
Newly established in FY2024, the Blockchain Game Subcommittee addresses the unique convergence of legal, tax, accounting, and security challenges within the gaming industry. With participation from major gaming companies like Konami and Sega, this group aims to create a clear and predictable regulatory environment to foster the healthy growth of this burgeoning market.
The Stablecoin Subcommittee shifted its focus from the initial legislative push (which was successful in prior years) to practical implementation and second-generation issues. It worked on developing self-regulatory rules for the handling of electronic payment instruments and provided industry feedback to the FSA's working group on the management of reserve assets for trust-based stablecoins.
Other key groups continued their work in specialized areas. The Security & Systems Subcommittee was instrumental in the establishment of the JPCrypto-ISAC (Information Sharing and Analysis Center) in collaboration with JVCEA, creating a formal mechanism for industry-wide cyber threat intelligence sharing. The ICO/IEO Subcommittee continued its collaboration with self-regulatory bodies to refine the operational framework for Initial Exchange Offerings in Japan. The Use Case Subcommittee focused on real-world adoption, publishing a "Guideline for Building a Regional Revitalization DAO" to help local communities leverage decentralized technologies. The DeFi Subcommittee monitored global regulatory trends to inform future Japanese policy proposals that balance innovation with user protection.
The Accounting Working Group tackled the critical bottleneck of auditing for web3 companies. Collaborating closely with the JICPA, it developed and published guidance on the accounting treatment for crypto-asset issuers, particularly in the context of IEOs, and co-hosted forums to foster mutual understanding between web3 businesses and their auditors.
Finally, the web3 Business Rules Task Force continued to be a high-impact group. Following its success with the LPS Act revision, it focused on clarifying the scope of brokerage and intermediation, work that directly informed the legislative proposal for a new intermediary business license, further reducing regulatory grey zones for the industry.
IV. Organizational Strength and Governance
The JCBA's operational and organizational health remained strong, providing a stable foundation for its ambitious agenda. Membership grew to a record high of 155 companies, comprising 33 Full Members, 103 Associate Members, 4 Special Members, and 15 Group Members. The addition of 22 new members, including major traditional enterprises like Konami Digital Entertainment and Sega, demonstrates the expanding relevance of the association beyond crypto-native firms.
The leadership structure was reaffirmed, with Noriyuki Hirosue (bitbank) continuing as Chairman, Yosuke Shiraishi (MZ Cryptos) as Vice-Chairman, and Masashi Sachi as the full-time Senior Managing Director. The association also strengthened its advisory board, appointing experts from leading firms such as pafin (formerly Criptact) and a director from KPMG AZSA's Web3.0 support division.
Governance was maintained through a regular cadence of meetings, including the Annual General Meeting, monthly Board of Directors meetings, and quarterly Full Member meetings. This structure ensured transparent decision-making, effective information dissemination, and the continuous alignment of the association's activities with the collective interests and priorities of its diverse membership.
In conclusion, the JCBA's Fiscal Year 2024 was a period of strategic execution and significant impact. By adeptly navigating the global and domestic environments, the association secured tangible policy victories, deepened its engagement with government and international partners, and provided crucial guidance to a rapidly expanding industry. Its work has been instrumental in clearing regulatory hurdles, fostering a more favorable business environment, and laying the groundwork for Japan's emergence as a leading global hub for web3 innovation.
Norbert Gehrke
