Cryptoassets are legal in Japan

According to a report by Bloomberg on February 19, the Japanese government approved a bill on February 16 aimed at improving the competitiveness of Japanese industry. Japan is one step closer to allowing venture capital firms and other investment funds to directly hold digital assets after Prime Minister Fumio Kishida’s government agreed to submit a revised bill to implement the change.

The cabinet approved a bill on February 16 to partially amend the country’s Industrial Competitiveness Enhancement Act, according to a statement posted on the Ministry of Economy, Trade and Industry’s website. The new bill states that steps will be taken to include crypto assets in the list of assets that investment limited partnerships can purchase and hold. An investment limited partnership is a vehicle used by venture capital firms to secure investment capital.

Kishida’s plan to revive Japan’s economy includes backing so-called web3 companies that are building future, decentralized versions of the internet based on blockchain technology. Japan has always been considered to have strict regulations on the digital asset industry compared to other countries, but has recently begun to relax some cryptocurrency rules, including those around token issuance and taxation. Meta Universe Headline (WeChat ID: TopMetaNews) reported these changes, showing that the Japanese government’s attitude towards the digital asset industry is changing, which may bring new opportunities for the development of the industry.

The Japanese government is currently planning to submit this amendment to Parliament for discussion during this session. If this amendment is passed, it will open up Japan’s investment field and promote investment in digital assets. Investing in web3 startups often involves distributing tokens to backers, and cryptocurrencies may become a faster way to exit investments than traditional stock markets.

Hiro Kunimitsu, founder and CEO of Gumi Inc, said that in the past, Japanese crypto projects had to rely on foreign venture capital for financing, but the process was fraught with challenges. . With the passage of this bill, Japanese venture capital will be expected to provide investment for Japanese Web3 start-ups, creating more opportunities for their development.

According to reports, Japan has been a global leader in developing a regulatory framework for stablecoins and has expressed plans to promote Web3 while taking a tough stance on user protection. In September 2023, Nikkei reported that Japan plans to relax regulatory rules for venture capital companies to invest in crypto startups. The cabinet has now approved the measure, and the revised bill will be introduced and debated in this session of parliament. Following the revision, venture capital firms will provide funding to Web3 startups in exchange for crypto assets.

According to "Businesstimes" report, Japanese Prime Minister Fumio Kishida's agenda to revitalize Japan's economy includes supporting the development of so-called Web3 enterprises. Web3 refers to the support of blockchain technology. The future of the decentralized Internet. Japan is considered to have strict regulations on the digital asset industry compared to other regions, but it has begun to relax some cryptocurrency regulatory rules in areas such as token listings and taxation.

According to “Coindesk”, this legislative reform is currently awaiting review by the legislative body. It will have a significant impact on the way Japan’s Web3 venture capital operates and may set a precedent for other countries.

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