​The CABINET of Japan has just endorsed the law draft which, by potentially widening the investment range of venture capital (VC) firms and investment funds, supports the holding of crypto assets. This is in line with the country’s proactive attitude in cryptocurrency regulation and its ambition to take the lead in the world of the digital economy.

____________________________________________________

• Japan’s cabinet has approved a bill allowing venture capital firms to hold and manage cryptocurrency assets, potentially enhancing investments in Web3 startups.
• The bill aims to diversify investment strategies and support the growth of innovative businesses, aligning with Japan’s regulatory leadership in cryptocurrency.
• The new regulatory legislation prepared for debate in the Diet, Japan’s parliament, could become a landmark decision that will alter the destination of venture capital funding for the tech sector.

____________________________________________________

Japan Advances Bill Empowering Venture Capital With Crypto Asset Management

​ Upon Diet’s approval by the Japanese parliament, the bill is like to renew the ecosystem for Web3 start-ups which is considered its frontier of technological innovation. Last Friday the Ministry of Economy, Trade and Industry gave a green light for the bill sanctioned by the cabinet, which is in fact, a first step to incorporating the rising digitized asset class into the nation’s economic framework.

Japan has traditionally been the country that has established a safe regulatory environment for digital currencies, giving special attention to stablecoins, and has a strong desire to improve this ecosystem while maintaining the highest standards of consumer protection. A report from Nikkei in September 2023 hinted at Japan’s intent to ease constraints on VC investments in crypto-centric enterprises.

Following the cabinet’s green light, the amendment to the Industrial Competitiveness Enhancement Act is set to be deliberated in the ongoing session of the Diet.

The amendment is proposed not only to enlarge the scope of investment for VCs and funds but also to bring about new business ventures and strengthen investment in industry sectors that drive the economy of Japan, particularly to support startups and medium-sized businesses. In contrast, funds and investors are limited here.

​ Legislation of this bill, therefore, can pave the way for VCs to fund the Web3 start-ups using cryptocurrency assets which can bring about a change in the traditional venture investment mechanisms.

​ We also welcome those who are passionate about staying in touch with the intrinsic dynamics of AI in real estate and the wild crypto market as we hope to have your faithful audience through subscription to our newsletters. Develop a deep and timely understanding to master these fields and be on top of recent trends. Invite today and get newsletters that will be turning best for you!