Japan’s government is ardently advocating for an “active cyber defense” (ACD) policy, with mainstream media outlets rallying to support the cause through a series of stories intended to raise public concern. This move, however, is seen by many as a potential threat to the peaceful crypto and privacy advocates in Japan, particularly if the country follows the examples set by the US and UK, as suggested by leading news outlet Nikkei.
Cryptopolitan recently reported on Masaaki Taira, Japan’s digital transformation (DX) minister, being instructed by Prime Minister Ishiba, a self-proclaimed “defense geek,” to expedite the development of an “active cyber defense” (ACD) bill. The bill’s controversy stems from the fact that it permits state surveillance by private telecom companies on Japanese citizens, even during peacetime, with the collected information being shared with the United States. There is also skepticism about Taira, who is embroiled in scandal, possibly having ties to anti-Japan factions within the Chinese Communist Party.
Nikkei, a prominent news outlet, has added its support to the “active cyber defense” initiative. It recently published a report advocating for a more robust preparedness against cyber attacks. The December 16 report not only endorses increased control over misinformation but also suggests that state-level “debunking” should be heightened in conjunction with major nations such as the US and UK.
This approach, however, is detrimental to cryptocurrency adoption and privacy in Japan. With the prospect of a digital yen now being considered, these actions pose a significant threat to the traditionally self-reliant Japanese citizenry. The result is an increased influence from international banking powers and pressure to conform to the whims of renowned international figures such as Musk and Trump, whom Taira intends to “closely follow.”
Regrettably, Japan’s pursuit of financial regulation, cryptocurrency, and information control continues to skew in a restrictive direction, despite the once thriving independent bitcoin ATMs in Tokyo (ca. 2015-2017) and popular trading sites like Local Bitcoins, which have long been hampered by the same prohibitive bureaucracy that extinguished the ATMs.
The proposed ACD bill purports to spy on public communications through private companies with the objective of preempting cyber attacks and misinformation. Reports from local media suggest that the new legislation could even authorize the shutting down of people’s computers, evoking dystopian images from 1984 and The Minority Report.
Furthermore, the forthcoming Central Bank Digital Currency (CBDC), also promoted by Nikkei, paints a clear picture of the current situation: Japanese state officials are portraying themselves as victims while further infringing on the rights of the real victims — ordinary people trying to make ends meet.
Japan’s NISC (National Center of Incident Readiness and Strategy for Cybersecurity), responsible for issuing cybersecurity alerts, is significantly behind its counterparts in Britain and the US in terms of frequency. However, Japan may need to prioritize addressing the country’s inflation problem, over-tourism, and work-related suicides rather than focusing on bolstering military spending and drafting invasive cybersecurity bills.
This underscores why permissionless cryptocurrencies have become so important. They provide a much-needed avenue for economic freedom, a metric that truly measures social progress. On this front, both the Japanese government and governments worldwide are failing miserably. Therefore, if falling behind in dystopian surveillance and “pre-crime” cybersecurity bills is Japan’s only shortcoming, it might be a blessing in disguise.
