Japan Declares Crypto War on China🚨Trump Backs Ripple vs Banks🔥

Japan is putting together one of its most significant updates to crypto regulation in years. The government is preparing to reclassify digital assets under financial-instrument rules and lower the tax burden for investors across the country. Meanwhile, Trump is targeting Ripple rival bank JP Morgan who is allegedly partnering with China to spy on Americans.

~This episode is sponsored by Mevolaxy~
Boost your crypto with Mevolaxy ➜ https://bit.ly/Mevolaxy

00:00 intro
00:05 Japan vs China
00:37 Taiwan Tensions Rise
01:28 $110 Billion Stimulus Incoming
01:59 Alibaba x JP Morgan: Triggers Trump Investigation
03:23 Trump Targeting JP Morgan
04:24 Japan Lowering Taxes on Crypto
04:50 Crypto Green List
05:35 Japan Loves $SHIB
06:30 Sponsor: Mevolaxy
09:00 Japan Stablecoin Launched
10:19 Polygon & Avalanche
10:43 Ripple $RLUSD Japan in 2026
11:18 Japan Sony Gaming
12:00 Soneium Super App
12:39 Soneium Flips Ethereum
13:04 China CBDC vs Stablecoins
14:09 Ethereum Fusaka Upgrade
14:39 More Upgrades Coming in 2026
15:25 Why Japan Loves Ethereum
16:07 Major Announcement Tomorrow
16:41 outro

#Crypto #Ethereum #XRP
~Japan Declares Crypto War on China🚨Trump Backs Ripple vs Banks🔥~
⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺⎺


Join our community!

Diamond Circle Email (FREE)➜ https://bit.ly/pbnmembership
Private Telegram Group (FREE) ➜ https://t.me/+nISqoMxrok40NTcx

Subscribe on YouTube ✅ https://bit.ly/PBNYoutubeSubscribe
X/Twitter 📱 http://bit.ly/PBNtwitter

Get official PBN merch! ➜ https://merch.paulbarronnetwork.com/
~ The Best Self Custody Wallet ➜ https://tangem.com/en/ Use Code PBN for Additional Discounts!
~ The Best Crypto Exchange ➜ Coinbase, get up to $200 in crypto - coinbase-consumer.sjv.io/BARRON
~ Looking for the best tax havens for Crypto? Free Month with iTrust Capital ➜ Use PROMO CODE - PAUL BARRON https://rebrand.ly/PAULBARRON

Episode Transcript

Speaker 1 (00:00):
Japan and China declare crypto war. Today, we'll break it
down for you. There is a lot happening in the markets.
You don't want to miss it. Let's just jump right
in if you guys will remember, we've been covering the
Japanese markets and the China markets for quite some time,
and of course you probably saw this video right there
where we talked about Japan going all in on crypto,
obviously through the sonium chain. I'll get into a little

(00:21):
bit of details there, even Japan and China going to
battle years ago in a lot of the Web three tokens,
which of course we talked about quite at length. So
I think what we're going to see today is an understanding.
I think where what this means for crypto in general.
Let me go to this first clip because this will
start to outline how the Japanese Prime minister triggered China.

Speaker 2 (00:44):
Take a look.

Speaker 3 (00:45):
Takaichi met Chinese President seadent Think at a regional economic
summit a few weeks ago. She's refused to walk back
her comments and says japan stands on Taiwan has not changed.

Speaker 4 (00:56):
And over the.

Speaker 5 (00:56):
Weekend we got this travel ban or advisory rather for
Chinese citizens traveling to Japan.

Speaker 4 (01:04):
And this has Chinese ships and military drones were also
spotted thirty Chinese military aircraft, seven Navy ships, and one
Coast Guard vessel around Taiwan over the past twenty four hours.

Speaker 6 (01:17):
If Chinese travelers did go down to zero, it could
have an over two hundred billion yen hit on the
Japanese economy, which obviously is pretty huge and could also
even have implications for things like the Bank of Japan.

Speaker 1 (01:30):
If you look at Japan's twenty year government bond yield,
they're surging quite a bit. Government prepares to print another
one hundred and ten billion stimulus package. That's the kind
of movement right there that we're talking about. And of
course to the note there in the clip is that
the impact on just the tourism side of things much less.
I think the economy there in Japan could be a

(01:51):
pretty significant going forward all right within the region. You
kind of have to consider what else is going on
within China and how the US is dealing with that.
Of course, Ali Baba JP Morgan showed that partnership. Let
me go to this clip because this gets into some
interesting situations that's happening here between the United States and

(02:12):
Japan versus JP Morgan and China, take a look.

Speaker 7 (02:15):
A second part is that we allow regings of blockchain
technology is intech tokeonization is not starting from the stable
coin like when we work with JP Morgan, they has
their own cond of organization system stable coin, welcoming to
give out it after.

Speaker 8 (02:33):
This, and that's very important because there is a difference
between tokenized payments and the stables. JP Morgan this year
launched the JPMD token, which is specifically designed for cross
border business to business payments.

Speaker 5 (02:45):
It's be interesting to see how that pans out.

Speaker 9 (02:47):
Their report is that Ali Baba allegedly provides tech support
for Chinese military operations against targets inside the United States.
The Chinese company supplies the People's Liberation Army with access
to customer data that includes IP addresses, Wi Fi information,
and payment records, as well as AI related services.

Speaker 8 (03:06):
I suspect they're taking a hard look at limiting Ali
Baba activity in the United States.

Speaker 1 (03:11):
So now you've got JP Morgan that is directly entangled
with the Chinese via Ali Baba. This of course sparked
a fairly big reaction from the administration let me go
to that clip.

Speaker 4 (03:24):
What are you saying about JP Morgan.

Speaker 5 (03:26):
JP Morgan then de banked us at that time.

Speaker 4 (03:29):
Wow soon, So JP Morgan gave us a statement, we
do not close accounts for political reasons.

Speaker 5 (03:34):
Well, then why the hell did you debank Trump Media?
You know we had a clean bill of health, We
just got approval by the SEC. Why would you debank
somebody that wants to deposit two hundred and fifty million
dollars into your bank. We're going to do everything under
the law to figure out what JP Morgan knew, when
did they do it? This is easibly.

Speaker 1 (03:53):
Knowable, all right, So now you have JP Morgan under investigation.
This could of course also start to stem in to
their activities around Alibaba. All things could start coming into
play here, creating a lot of pressure on JP Morgan.
And remember that a lot of this is trying to
build an infrastructure around crypto and digital asset payments. And
this is why I think XRP and Ripple are starting

(04:15):
to position into a scenario that it could benefit because
remember Japan and the United States starting to align here
on digital assets. And I'll explain a little bit further.
Japan is now proposing some new rules, and this is
around their digital asset taxation. They're talking about a twenty
percent flat tax. This is down from like fifty five percent.
This would be a huge move by the Japanese government

(04:39):
and of course it would create a tremendous activity. And remember,
let's go over just by one of the biggest exchanges
over there, Bitflyer. This is a good example.

Speaker 2 (04:47):
These guys are here.

Speaker 1 (04:49):
I know this isn't a lot of different tokens that
are available around Bitflyer. Point being is that it's cornering
in some of the key ones, obviously Bitcoin, ethereum, XRP.
This I think get into a situation that it could
start to influence I shouldn't say influence the United States,
but also align with the United States. I'll show you
some interesting points here, not only around what Japan has

(05:10):
been doing, but also how this coordinates with what the
United States is doing. Here's Sheba. You know this is
now joining Japan's green list. Now, the way this works
is there's a handful of tokens out there that get
allocated into this green list. This green list basically a
preferential treatment around taxes. This is a big benefit to
of course the Sheba community, and I want to go
to a clip real quick because this will get into

(05:31):
some detail around what the Sheba community did around this statement.
Take a look.

Speaker 2 (05:37):
Imagine if crypto was treated just like stocks with insider
trading rules and everything sounds like someone's finally getting serious.
Is this happening in the US. No, Japan, The FSA
is planning a huge overhaul, slash the tax rate from
fifty five percent down to twenty percent and even let
banks hold it. That's a massive shift. Exactly.

Speaker 1 (05:59):
Normally we don't put up talking dogs, but you know,
this is Sheba and the Sheba community, so you'll learn eventually.
This is kind of how crypto is. It works off
of memes. Speaking of that, you've got one right here
with Elon Musk where we've got a great Sheba Enu
playing the banjo, and of course what does it get, Well,
it gets ten point one million views. These are kind
of funny things that happen out there on crypto x.

(06:21):
But in general, what this does is it energizes a
lot of these communities, and this course being one of
the biggest communities out there. When it comes to the
idea of meme coins, here's a word from our sponsors. Recently,
I came across a really interesting project in DeFi and
this is a project called the Balaxy, and it's not
just another staking platform. It's actually a project that uses

(06:42):
a network of MeV bots to generate profit, something that
was recent previously only available to big players. That is
something I can confirm. This is one of the strategies
that I've seen used by some of the most wealthy
digital asset managers out there, and the way it works,
it's kind of cool to put it. Simply, users deposit

(07:04):
funds into liquidity pools. These are managed by MeTV bots,
and then these bots perform the blockchain operations. Basically, they
work off of sandwich strategies and this is where you
can earn from these network inefficiencies. That's why the system
works both in market downturns market upturns. A really good
example is just what they're doing on Mevstay. You can

(07:26):
kind of go to their website learn a little bit
more about that actually launched. There even a scenario of
course on stable returns, algorithmic precision all around market fluctuation.
This is some of the things that I've been looking
for for some time, and I think the key here
is as you start to get into more strategic investing,

(07:47):
especially around staking and utilizing, things like this, I think
are really kind of the core of how you're going
to continue to kind of use your assets to make
more money. Now, they do have a new iPhone app.
You can jump over to the Apple App Store learn
a little bit more about what they're doing there, which
is Mevstats. This is a new mobile app. Recently the

(08:07):
company launched it. It's now available over there on the
app Store. It allows you to track your income deposits
real time stats right from your phone, so it's very
easy and super intuitive. I've tested this one works fantastic,
and of course you guys can check it all out.
They are being covered across the industry, as you can
see right here over on vesting dot Com, a lot

(08:28):
of mesters switching to farming on mistake with the Valaxy.
You can kind of see that. And I think also
when you look at what they've been trying to do
to get out there with the Token twenty forty nine
presentations at that conference, this is something that I think
more projects should do, and that is get out there,
get in front of what's happening in the industry and

(08:50):
let people learn more about what you guys are doing.
So you guys should go over and visit the Valaxy
dot com. You can forget about the market volatility stake
one US earn every day. Other things that play into
this is Japan green lighting a consortium of major banks.
This is the combination of major banks that go around

(09:11):
the JPYC token, which is their stable coin. This is
important because it is not a CBDC and this is
one of the cornerstones of what Japan is trying to
do that is almost in lockstep with what the United
States is trying to do. So you've got the United States,
Japan looking at digital assets one way, and China looking

(09:31):
at digital assets another way. All right, let's jump over
to this article right here. This was interesting because it
breaks down how these banks are going to be connected here,
but all of this solution is going to be running
on networks like Ethereum, Polygon, Avalanche, Cosmos, etc. Point being
is you've got large payment infrastructure here, small payment infrastructure
here with Polygon, good example, large payments for Ethereum and Avalanche.

(09:55):
This gets pretty intriguing when you think about the connection
a full blown launch within the Japanese ecosystem and how
it might line up with the United States as well.
So I think their prime minister also very very friendly
with President Trump. They seem to align a lot of
things from a geopolitical stance, and of course that I

(10:15):
think created a little bit of that friction between Gigiping
and the Prime Minister of Japan. Just to look at
what the JPYC volume is doing. Remember this thing just launched,
but you can kind of see right here the movement
on avalanche ether polygon starting to move, as well as
the DEX volume also starting to move. He here is
that this could be the beginning of something very very

(10:37):
big and very quick in terms of adoption. So beyond
the lookout for what we're going to see now, remember
Ripple of course has been coordinated with what's going on
within Japan for quite some time. Our theory is that
Ripple is trying to align now more so with the
United States and what's going on in the US finance markets,

(10:58):
which in reality is a big, bigger pie. But this
was something that they did in early twenty twenty six
where they were bringing our LUSD in it. So key
is is they're keeping their hands in both markets. I
think this is going to be positive for Ripple, and
of course the real question is how does this play
into the JP Morgan rivalry now that might be brewing
with Ripple. Japan also eases their crypto rules around blockchain

(11:23):
gaming encourage a lot of activity around Web three gaming,
which is going to be another factor. This is one
of those markets that has kind of a gaming culture,
a lot around anime which ties into web three. This
gets pretty interesting in terms of where growth could come from.
Startail is one of the examples of this. They unveiled
a super app for Sony's Sonium. Remember Sonium we talked

(11:45):
about before. This will be kind of the all encompassing
crypto that's going to be utilized in Japan around a
blockchain ecosystem, and this is one that we've done a
couple of full videos on. If you guys want to
go back and check them out, just search Sonium on
our channel. You'll see what I'm talking about when we
go a little bit deeper. But Startail put out this.
It was a teaser and it's all around a super

(12:08):
app that could be launching. If this actually gets out there,
then what You've got is the potential for this right here,
which is a lot of different retailers that could start
to play into the sixty five thousand stores that most
the computer systems have built, convenience stores, drug stores. All
of this now available on the Japanese Yen stable coin JPYC.

(12:31):
Again remember eth Ethereum, Polygon and Avalanche tied into this network.
So pretty cool opportunities here. So when you go over
to L two B you can kind of see what's
going on inside the activity within that region, and right
there Sonium starts to flip Ethereum right there. So this
is the point I'm getting at, is that Sonium, which

(12:52):
will be the Japanese chain, all of this starts to
correlate around the element of payments and infrastrate ructure as
well as gaming, all the things they're going to be
talking about in a new digital economy inside the Japanese market.
So pretty cool thing. When you jump over to the
CBDC tracker, a nice little visual here we'll click on
the United States gives you a full rundown here rule

(13:14):
of law six point five out of ten. That's not good.
I don't like that one as much. Nine point seven
to seven though on freedom of movement, and this will
be interesting around the idea of digital assets. Outside of that,
then you can kind of take a look at some
of the other countries that are out there. We'll take
a look at Japan real quick. Let's click on Japan,
and when you look at Japan, freedom nine point six

(13:36):
seven out of ten, size of government, rule of law
seven point ninety nine. Very good. If you take a
look at China, this is where it gets into kind
of this head to head around digital assets. Rule of
law four out of ten, freedom of movement two point
two out of ten. So this is the point that
we're talking about on the idea of digital assets and

(13:59):
what we will see in stable coins, especially what's going
on in Japan versus CBDCs. So be on the lookout
because this all pertains to Ethereum. When you consider where
Ethereum is in the market, they have gone literally all
in on the Japanese, and I think inversely, the Japanese
have gone all in on Ethereum. You can kind of

(14:21):
see it right here with the most recent Usaka somewhat
named out of the namesake of Osaka, one of the
popular Japanese cities, and these are the main features that
will be launching early December. And I also have a
clip from DevCon that's actually happened today that'll explain a
little bit more.

Speaker 10 (14:39):
Take a look, so Ethereum can already process fifty percent
more transactions than it could at the start of the year.
Over the course of twenty twenty six, we're going to
have a bunch of EPs that make it possible for
the Ethereum network to safely handle a larger amount of scale. Look,
within one to two years, the number of people who

(15:00):
will actually be able to have a phone note will
will increase quite a bit despite the scaling that is
happening over the next two years.

Speaker 2 (15:08):
Where can we get those glasses?

Speaker 10 (15:10):
I think they're like on Amazon. Unfortunately we haven't made
decentralized Amazon yet, So like hackathon idea.

Speaker 2 (15:17):
Yeah, I love that.

Speaker 1 (15:17):
Just let's just throw out a hackathon idea for decentralized
point being is a lot of upgrades in twenty twenty
six coming, according to Vitallic. He goes further into the
same conversation around why Japan is all in on Ethereum.

Speaker 10 (15:33):
Take a look the reason why Ethereum was on that
list of elements from science fiction is because there was
this Japanese movie called Castle in the Sky. One of
the central objects was, you know, the ethereum coust crystal.
The ethereum crystal is like the thing that made the
castle float. I had no idea this is where I
was from, but then you know, I called it ethereum,
and then I think our artist like probably knew about

(15:55):
the movie, and then like made the logo in the
shape of an ethereum crystal. And then I remember we
are like actually watching like learning about it and watching
the movie for the first time literally five years after that,
and I'm like, whoa, the crystal actually looks like the logo.

Speaker 1 (16:08):
So obviously you can kind of see the connection. There
a lot of kind of soft connections that have really
created kind of the ethereum lore that I think again
is going to play out in the Japanese market. Other
thing that could be happening on the ecosystem. Remember if
we didn't, if you guys didn't check out our interview
last week with Polygon Team with Sandy, he mentioned this

(16:31):
and there it is tomorrow something's coming. We think somewhere
around a one trillion dollar big asset manager could be
dropping into the Polygon ecosystem. Of course, that benefits ethereum.
All right, so you guys know what to do. If
you're not in our Diamond circle, make sure and get
in right now. It's a great place to additional content
from us, and it's free. All I have to do
is hit the link down below, follow me out there

(16:52):
on X at Paul Baron. We'll catch you next time
right here on The Paul Baron Show.