- Japan has moved to include crypto assets in the list of investment vehicles permissible for Venture Capital.
- The move is targeted at fostering web3 expansion in Japan.
- Japan recently has charted plans to commence the trade of the region’s first-ever digital securities tokens.
The growing interest in the cryptocurrency industry is spurring new industry developments among leading Asian hubs such as Hong Kong, resulting in regulatory revisions among various financial authorities.
Joining the ranks is the world’s fourth largest economy, Japan, which is now considering financial regulatory amendments to accommodate the surge in the demand for the asset class.
Japan Eyes Crypto Expansion
According to local reports, the Japanese Ministry of Economy, Trade and Industry has announced the approval of the bill proposing partial amendment of the ‘Act on Strengthening Industrial Competitiveness’ to allow venture capital firms operating within the region to invest directly in cryptocurrency assets.
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The reform aims to ease the long-standing restrictions on the acquisition and holding of crypto assets, stimulate the expansion of web3-based business in Japan, and streamline the hurdles associated with business conduct and capital raising for investment Limited Partnerships (LPS).
“Measures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS),” the bill read.
The approved proposal will move on to the Japanese legislative body for deliberation and a final regulatory nod before its implementation into the financial system.
This development aligns with Japan’s efforts to foster its crypto landscape and establish its position as a leading digital hub.
Japan’s Crypto Initiatives Thrive
In September 2023, the Japanese government issued a green light for crypto fundraising, permitting startups and businesses to raise funds by issuing crypto assets instead of traditional stocks.
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This marked a significant regulatory win for its local crypto industry, signaling a shift in the government’s once-rigid approach to the asset class and efforts to expand the pool of potential investors and stakeholders in the country.
Japan has also moved to enforce regulations targeting concerns surrounding major stablecoins offerings within the country, seeking to ensure accessibility and investment protection.
Furthermore, the trading of digital securities commenced on December 24, 2023, spearheaded by Japan-based Osaka Digital Exchange Co. This marks the first phase of Japan’s initiative to diversify its asset portfolio and generate higher returns, aligning with the vision of supplying the financial needs of its growing population.
Read here to find out about Japan’s regulatory expansion to foster industry growth:
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