Building with Japanese Roots & Global Mentality

Transcript

to [Music] [Music] [Music] uh okay can we start can I start all

right okay thank you for waiting everyone sorry the technical issue and I'm late uh but hello again so um I will continue speak uh here and I'm my Fujimoto co-founder of inax and today we have two main topics to cover first let me talk about International topic and uh yeah because many people in the crypto space travel around uh frequently however I guess not many have visited the American uh African and South American countries and I have

lived in there uh their Legions for several months and I will share my experience and from being there the second topic is about the Japanese market so while interest in the Japan Market is growing I have he that there is a limited information avail able outside Japan so making it uh difficult for people to understand it so I will share the important points you should know if you plan to business in Japan okay then uh let me introduce

myself and my project first so I'm co-founder of inmax inmax is stateless layer for etherium uh stateless mean that all processing happens on the client side not on the Node side or blockchain side so this allows scaling outside the blockchain without posting much data on chain that's what we mean by statelessness for example if many people will join our Network it can scale in parallel so users don't need worry about fluctuating gas

cost so yeah few months ago EIP 4844 was implemented on etherium uh which made the gas cost cheaper for all of layer 2 as you know uh this is great news but uh many people don't know about when the network get busy uh gas fee will increase again when EIP 4844 was implemented I was asked do we really need a stateless architecture if bles make things cheaper uh this question made me realize that most people don't know that gas fee can go up again when probes get

congested bloes essentially expand the block space however INX use almost no block space this mean that inmax with its stateless architecture does not experience gasp increase even duelling congestion uh it's not just a temporary solution we have finally uh created a way to completely estimate um concerns about gas feeds that's what it inax is so we are able to uh Complete inax because we have been researching plasma

since 2018 uh this stess architecture is to result of our research on plasma uh last November maybe you know that uh vitalic wrote a blog post called exit game for evm BS the return of plasma which brought attention back to plasma technology uh today I don't have more time to talk about it but if you want to learn about more uh plasma uh please join us our plasma Con on July 31 you can uh scan QR code there and we are

waiting for you to join our conference all right then let's start with the first topic uh which is about Africa the crypto ecosystem is growing LLY in many part of Africa what impressed me is that people are using in their uh using crypto daily lives not just a spe speculation uh at the etherium quum we had yesterday uh my friend Yosef said that about 18% of last year's onchain transaction happened in

Africa in some major African countries up to 20% of people are using cryptocurrencies Africa is um okay so Africa has many countries as you know and so it might be hard to know where to start uh I will I'm recommend uh Nigeria so in Janu January this year the Nigerian government arrested a binance Executives and imposed a large fine which may worry some people but right after this we went to

Nigeria um and we held a blockchain workshop for the government uh officials to help them understand blockchain better while there were uh cautions about cryptocurrencies they showed support for blockchain technology for example in early August we will officially announce a partnership between a Nigerian State and interx to run blockchain education program so I recommended Nigeria uh because it also has a population of 220 million people then the largest

Legos has 21 million people and it's a hub for culture entertainment and startups in Africa in 2023 the remittance amount of Nigeria was high as 20.5 5 billion which is five times more than the second and third places Ghana and Kenya for Nigeria remittances from Nigerians living abroad are more important source for foreign currency than foreign direct investment our uh in Max project our

stable and low gas fee will likely be in high demanded in this kind of a market in the future okay then uh I will talk about Argentina and elato so Argentina has a population of about 47 million people and it said that there are 5 million cryptocurrency users because the C country uh country's currency fiat currency has been unstable for a a long time many people have been using crypto for a while elator is

country that made Bitcoin a legal tender which may people know about it I feel that in countries where people use crypto out of necessary like Argentina and Nigeria uh spread diff uh differently compared to the country like Ela battle where the government push it in El it's impressible that you can see Bitcoin in big chain stores like a Denise and Starbucks and McDonald's but it doesn't seem like many people are using crypto as a payment on the other hand in Nigeria and Argentina many people use crypto so

there are a lot of people who know about it and are knowledgeable then next uh let's talk about Japan so I don't know it's this gross information or not but I hear that Edon will be held in uh Japan again next year and maybe uh web three entrepreneur sorry many web3 entrepreneurs are also coming to Japan some of you listening today might be think about it too so since the Japanese government made web3 as a national

strategy things have changed uh because it become a national strategy B companies are showing interest and their uh progress in uh legal regulations and taxes thanks to the industry leaders the situation is improving however there are still challenges that we need to address so let's talk about that so uh as you seeing uh this screen so Japan has a high tax rate on profit from selling cryptocurrencies held for more than one

one year uh compared to other major developed countries uh recently uh the Japan blockchain Association where I serve as a advisor sub subed a proposal to the government for tax reform uh regarding cryptocurrencies and we posted about this information on Twitter and this tweet was widely shared and this shows that this is an important issue we need to fix this issue uh for many Japanese people and the profit from Trading uh listed uh Securities like stock and

bonds are usually taxed separately under the system called the separate taxation in this system a tax rate of 20% is applied to the total profit on the other hand uh profit from cryptocurrencies are taxed under the system called comprehensive taxation where they are added to other income this can result in the tax rate of up to 55% so compared to other Financial product like a stock and bonds cryptocurrency are subject to higher tax rates and uh yeah okay yes and as of the

end of May 2024 the number of cryptocurrency accounts in Japan reached 10.37 million the balance of user uh deposit also reached about uh three trillion Japanese Yen that is 21 billion USD uh including that cryptocurrency trading is no longer a major uh no longer a minor activity so with Japan total population at about 125 million the 10.37 million across represent about

8.3 of the population so however the uh figure of 88.3% may be uh like uh overstimulated as one person um can create multiple account so it is estimated that the actual number of cryptocurrency holders in Japan around 4.5% uh of the population uh this is lower than other countries such uh United States uh 15% and South Korea 30% and Germany 88.3% uh as well as well as a global

average is 6.9% yes but situation is improving and Japanese leader and uh so politician try to fix this problem okay then okay then despite the issue mentioned so far there there are definitely improvements being uh being made for example companies are no longer subject to make to Market tax on cryptocurrencies they hold uh constantly additionally issues with accounting and

the slow listing process of tokens in Japan are also being addressed one by one yes yes and as I mentioned about the token listing process so three years ago so the existing cryptocurrency Dew uh period this mean that for example exchange a listing one token and this uh exchange B want to this the same token uh sounds easy but three years ago it took two months but we now 2024

we need just five days it's very improving yeah and I also want to show these pictures um these photos uh I arranged to visit uh crypto bar rugano and blockchain Center in switzland uh zuk uh crypto bar and the Japanese uh Governor uh will visit uh together to learn more about the web stre uh Global um Global Experience and because Switzerland is one of the leading country and we have visited there and I'm very happy to see that now government is very very supportive and

active for the web3 in uh Japan uh for how I say uh web 3 future in Japan yeah and I share about the things about Japan but uh as I said it's improving and also we have a good point about Japan so uh unfortunately we had a bad bad bad experience about the hacking start from Mount go and coin Che there are many big hacking happening happened in Japan but we have learned uh from that and now uh license Japanese license

exchanges have uh uh a token uh not in hot wallet uh they are hold the customer token in cold wallet and it is very important and maybe you know about that the dur during the FDX collapse so customer asset were protected in Japan um because FDX Japan followed this rules that's why um Japanese customer saved yes and lastly so I want to share about the what Hot Topic in Japanese

community so recently so almost all of my friend talking about the stable coin and uh after change the regulation last year so Japan had U made a create a real R about stable coin then so now many Japanese Banks uh try to create a stable coin and for the end users if we will have Japan Peg stable coin very very easy for the calculation of the tax and there are many benefit uh that's why now Japanese Community are following this uh topics so much yeah okay then so this is all I can

share the information and uh yeah lastly so thank you for Edon having this amazing conference and I have been working Edon team for a long time uh half year and uh maybe they face the difficulty uh working with Japanese company because they uh Japan has a very unique culture but after so you go how can I say into the community so Japanese people are uh at the beginning Japanese people are really shy but after that I I believe that uh we can uh uh support closely and work together and if you

have any question about the Japanese Market please reach out to me uh because I'm the organizer of Japan blockchain week and I have been involved in this industry for uh 12 years and I have experienced uh community in Japan yeah thank you so much and have a great day and let's enjoy Edon together thank you so much