Analysis: the opportunities and advantages of BytomDAO’s launch in Japan

Foreword

Not long ago, BytomDAO released a new whitepaper, officially completed the 3.0 upgrade and transformed into a pro-AI+Web3 innovative DAO autonomous community. And then at the TeamZ “AI+Web3” summit held in Japan, it officially announced the strategic migration to Japan.

It is reported that the landing of Japan is BytomDAO community DAO autonomy and globalization strategy deployment of important strategic initiatives, Japan as one of the largest economies in Asia, not only has a rich history of science and technology innovation and a strong foundation of digital economy, but also has a high degree of openness to the field of new technologies and digital assets, which will be conducive to the implementation of BytomDAO landing its! BytomDAO’s strategic deployment of “Based in Asia, Laying the Groundwork for Globalization”.

This strategic relocation is not only a reflection of confidence in the potential of the Asian market under the basis of compliance, but also a prudent choice based on the industry’s development, BytomDAO will rely on the Japanese market, and then expand its global influence, for the further development of the community and value creation.

Global Compliance Trend

Japan is the world’s third-largest economy. As an island country with a large population and limited land, Japan possesses a strong sense of crisis and aims to leverage the power of Web3 to maintain its economic position. However, due to many invasions in the early days such as the downgrade of Mt.Gox, The Japanese government has taken a cautious regulatory stance toward Web3.

In terms of the legal aspect, Japan’s Payment Services Act is the world’s first bill to bring digital currencies into the legal regulatory system, recognizing cryptocurrencies as a legitimate means of payment. From a taxation perspective, it exempts “tokens continuously held by the issuing company” from the “year-end market value corporate income tax”. Secondly, it exempts ‘tokens issued by other companies and held by a third party which are not intended for short-term trading’ from tax.

Regarding specific regulatory measures, Japan requires institutions engaged in cryptocurrency trading to apply for a license from the Japanese Financial Services Agency (FSA), and listed tokens need to be approved by the Japan Virtual Currency Exchanges Association (JVCEA), with the Japan Virtual Currency Exchange Association (JVCEA) under the FSA for self-regulation of the industry. The JVCEA has also promulgated the “Rules for Selling New Crypto Assets” (the“ICO Rules”) and the accompanying guidelines, which allow for IEOs and ICOs. In addition, FSA issued regulatory guidelines on cryptocurrencies and Web3 in 2022 to provide clear policy guidance for the conduct of related industries.

In addition, Japan’s Ministry of Economy, Trade and Industry (METI) and the Cabinet Secretariat have jointly established the ‘AI International Strategy Promotion Group’ to formulate rules for the use of GenAI, and to urge companies developing and applying AI to take on responsibilities corresponding to their stage of development and use, including compliance with existing laws to prevent human rights violations and respect for democratic values.

Whether it is the SEC’s series of tough regulatory measures, such as SEC v. Ripple, suing several CEXs, or the approval of the BTC, ETH ETF, suggests that the cryptocurrency industry is gradually coming under regulatory oversight, with the once lawless “Wild West” of crypto becoming a thing of the past. It all indicates that there’s regulatory room even in decentralized networks and blockchain.

BytomDAO chose the opportunity to fully consider the regulatory factors. In terms of Web3, due to Japan’s regulatory environment for digital assets and blockchain technology has clearer regulations. Thus the market has certainty regarding regulatory measures. In terms of AI, Japan also has a special group to designate AI-related regulations and to give full support to the policy.

All of these show that BytomDAO chose to lay out the Japanese market at this time, it is the the best time for BytomDAO.

High-tech Location Advantage

As one of the world’s largest economies, Japan has strong comprehensive scientific and technological strength. In recent years, it has attached more and more importance to innovation. Thanks to its continuous investment in technology development and product innovation, Japanese enterprises have a leading position in many industries.

Now, with the arrival of the third generation of the Internet and the AGI era, Japan stands as a third country in the realm of AI, beyond China and the United States, also favored by technology companies — Microsoft will invest 2.9 billion dollars in the next two years will invest in the construction of mega cloud computing and AI infrastructure in Japan, Amazon intends to invest 15 billion U.S. dollars to expand the cloud computing facilities in Japan. Open AI opens Asia office in Tokyo and NVIDIA announces an AI research lab in Japan ……

Especially thanks to early and sustained investment in the semiconductor field, Japan has two major advantages in the three major segments of the semiconductor industry — equipment, technology, and materials. Japan has world-leading semiconductor manufacturing equipment and materials.

In summary, Japan, being at the crossroads of the East and West provides fertile ground for developing the AI industry. On the one hand, Japan’s population base and several pillar industries have the basis for a wide range of AI applications. On the other hand, Japan, as a third country outside of China and the United States, is favored by Silicon Valley and Wall Street as the representative of global capital. Therefore, expanding into Japan also clearly offers market and geographical advantages.

Demand Driven

In addition to the regulatory environment, innovation atmosphere, and other factors, Japan’s substantial market demand is also a key focus for us. Japan is one of the essential and highly unified markets in Asia, with a high per capita income, a GDP per capita of US$40,247.15, and strong consumer spending capacity and ARPU. As early as the 60s and 70s, Japanese enterprises began their digital transformation, widely adopting and upgrading IT systems.

Take the SaaS industry as an example: the number of companies with an ARR of 10 billion yen or more increased from 4 in 2021 to 7 in 2022. In 2023, for the first time, Japan saw SaaS companies with an ARR of over 30 billion yen per company. Additionally, the number of SaaS companies with an ARR of 20 billion yen grew from 2 to 5 companies. This indicates that Japan has a high level of acceptance for digital applications and offers a vast market potential. We have accumulated extensive experience and services for the B2B sector from our Web3 and AI practices over the past few years, and products and services such as the upcoming Digital Human Agent are expected to emerge as important productivity tools for the business sector.

Moreover, Japan’s foundation in key industries such as anime and manga, electronics and financial services, and automobile manufacturing provides an excellent database and practical scenarios for the Web 3.0 Large Language Model (LLM) that BytomDAO is actively developing. Leveraging the cooperation and practical applications in these industries will also play a significant role in technological innovation and value enhancement for the entire community.

Conclusion

With the rapid development of AI and Web3 technologies, more practical scenarios and application cases will emerge across various industries. This will not only offer us ample market space and cooperation opportunities but also boost the prosperity of the $BTM-based community and ecosystem. The strategic expansion into Japan is sure to become a milestone for many major strategies within the community.

For more information about BytomDAO, please visit https://bytomdao.org/ or contact contact@bytomdao.org.

About BytomDAO:

BytomDAO is building an innovative DAO system based on the GenAI technology. If successful, it could considerably change the operating model of current entities and organizations. The new system could transform the basic governance process from “Vote — Execute” to “Create AGI — Decided By AGI”.

Our vision is to find a different and better way to AGI and make builders’ wisdom eternal.