In a groundbreaking move, Japan allows investment funds to hold crypto, as Prime Minister Fumio Kishida’s administration pushes for a revised bill allowing venture capital firms and investment funds direct access to hold crypto assets. This marks a significant shift in Japan’s regulatory approach to digital assets.
Japan is on the path to easing restrictions on venture capital crypto investments, signalling a shift in support for Web3 technologies. The move follows the approval of revisions to the Act on Strengthening Industrial Competitiveness, emphasizing Japan’s intent to boost investments in domestic Web3 startups. The amended bill is set for deliberation in the ongoing parliamentary session.
The Ministry of Economy, Trade, and Industry (METI) stressed the importance of the approved revision, focusing on amendments to the Act on Strengthening Industrial Competitiveness. These changes aim to enable venture capital firms to engage in projects exclusively related to cryptocurrency issuance, supporting local startups and medium-sized enterprises.
The approved changes explicitly include crypto assets that investment limited partnerships (LPS) can acquire and hold. This marks a departure from previous regulations that restricted venture capitalists from investing in crypto assets, emphasizing traditional equity investments.
Prime Minister Backs Crypto Integration
In today’s highlights, Japan allows investment funds to hold crypto. Prime Minister Kishida’s cabinet gave the green light to the proposed bill on February 16, marking a crucial step toward integrating cryptocurrencies into the country’s investment landscape. The bill seeks to amend Japan’s Industrial Competitiveness Enhancement Act, allowing investment limited partnerships, commonly utilized by venture capital firms, to acquire and hold crypto assets.
Economic Agenda and Web3 Focus
Bloomberg reports that Prime Minister Kishida’s economic agenda includes a strong emphasis on supporting the growth of Web3 firms. Japan, often recognized for its stringent regulations in the digital asset sector, has been gradually easing rules related to token listings and taxation. The bill is now set to be discussed in the current session of the Diet, Japan’s parliament.
Revamped Regulations for Increased Exposure
If the proposed amendment secures approval, it could pave the way for a more significant presence of digital assets within Japan’s investment sector. The move signifies a notable shift in the country’s regulatory landscape, reflecting a growing acknowledgment of digital assets’ potential benefits and importance in the investment ecosystem.
Flexible Opportunities for Investment Firms
The revised bill aims to provide venture capital firms and investment funds with increased flexibility and opportunities to engage with cryptocurrencies. This aligns with Japan’s broader goal of fostering innovation and economic growth. The amendments could potentially allow for clauses allocating tokens to backers in Web3 startup investments, offering an alternative to traditional exit routes like stock market listings.
Global Market Surpasses $1.92 Trillion
In the global cryptocurrency market, a milestone has been achieved, with the total market capitalization surpassing $1.92 trillion. Over the past 24 hours, the market cap has shown stability with a 0.88% change. However, compared to a year ago, there has been a remarkable surge of 76.87%. Bitcoin continues to dominate, representing approximately 53% of the total cryptocurrency market with a market cap of $1.02 trillion.
A Pivotal Moment for Japan’s Crypto Landscape
As Japan takes progressive steps toward embracing digital assets, the upcoming debate in the Diet will play a crucial role in shaping the country’s regulatory future. The potential approval of the bill could open new avenues for investment firms, signalling Japan’s recognition of the growing importance of cryptocurrencies in the global financial landscape. This move marks a pivotal moment in Japan’s journey towards fostering innovation and economic growth through the integration of digital assets.
Also Read: Renowned Author Robert Kiyosaki Expects Bitcoin to Take Off: Urges Trust in Gold, Silver, and Bitcoin.
