A research decentralized autonomous organization, or DAO, targeting Web3 has been established by the Digital Agency of Japan in an effort to coordinate national projects connected to digital transformation.
Despite the fact that many people think Japan has some of the harshest cryptocurrency restrictions in the area, acceptance there has advanced.
The Digital Agency announced at a meeting on Nov. 2 that it had created a DAO to investigate the functions and roles of DAOs. The group went on to say that it will weigh the advantages and difficulties of giving the DAO legal standing in Japan, citing Wyoming, a state in the United States that passed similar laws in July 2021.
Moreover, the Digital Agency stated that it intended to look into DAOs and features of digital assets that may be exploited for cross-border crimes that abuse blockchain technology and endanger user protection. Per the notice, the agency could analyze blockchain data in response to concerns from Japanese authorities about the digital asset market.
However, according to the Digital Agency, there are advantages and disadvantages to each of the services and technologies mentioned in relation to Web 3.0. That includes crypto assets, DeFi, NFTs, DAOs, and the metaverse. In addition, there are several issues that must be resolved.
The agency said:
The newly established Digital Ministry of the Japanese announced on November 2 that it has established its own DAO to investigate and analyze its problems and potential by actually participating in the DAO, and whether to grant the DAO legal personality.
Related Reading | BNB Chain Remains Optimistic In Q3: Report
Additionally, the organization also said it was investigating more digital innovation projects, such as testing a nonfungible token (NFT) that documents employees’ employment history. The group pointed out that, like many crypto assets, such a token would need to be exempt from the nation’s anti-money laundering and countering the financing of terrorism rules.