According to a local expert, if the proposed changes to the current law are approved, it could present a significant opportunity for Web3 startups in Japan.
On February 16, the Japanese cabinet gave its approval to a proposal allowing cryptocurrencies to be included in the list of assets that local investment limited partnerships can obtain or possess. This decision was announced by the Ministry of Economy, Trade, and Industry.
Japan’s New Investment Rules
Japan’s Ministry of Economy, Trade, and Industry announced changes to the Act on Strengthening Industrial Competitiveness, aiming to support local startups and medium-sized businesses. This update allows venture capital firms to invest in projects that issue cryptocurrencies exclusively, reported Coinpost.
After cabinet approval, the bill goes to the legislative body for further discussion, the ministry stated. In Japan, limited partnerships often invest in unlisted companies, a common method for venture capitalists to support startups, as explained by Coinpost.
Japanese VCs Entering Crypto
Hiro Kunimitsu, CEO of Gumi Inc., a Japanese gaming company, highlighted changes in Japanese rules allowing venture capitalists (VCs) to invest in crypto assets. Previously, VCs couldn’t invest in crypto, making it hard for Japanese crypto projects to get funding. Now, with Japanese VCs able to invest, it’s a big opportunity for local Web3 startups. This aligns with Prime Minister Kishida’s plan to boost Japan’s Web3 industry.
To support this, in December, Japan’s cabinet approved changes to tax rules. This could mean companies won’t pay taxes on unrealized profits from crypto investments, encouraging more innovation and investment in the sector.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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