Japan has taken a significant step towards expanding the investment environment for venture capital (VC) firms, with the cabinet approving a bill allowing investment funds and VC firms to purchase cryptocurrency assets.
Japan Cabinet Approves Bill Allowing Venture Capital Firms to Hold Crypto Assets
Once approved by parliament, the bill could herald a new era of investment opportunities in Japan's booming blockchain and cryptocurrency sector by paving the way for VC firms to fund Web3 startups in exchange for crypto assets.
The announcement was made by the Ministry of Economy, Trade and Industry after the cabinet approved the bill.
This move underlines Japan's commitment to encouraging innovation and supporting the growth of new technologies, especially in the field of decentralized finance (DeFi) and Web3 applications.
Japan has long been at the forefront of developing a regulatory framework for digital assets, focusing on ensuring investor protection while encouraging innovation.
The country's proactive approach to regulating stablecoins has positioned it as a global leader in the digital asset space.
Moreover, Japan has previously signaled its intention to encourage investment in crypto startups, and reports emerged of plans to loosen regulations for VC firms in September 2023.
*This is not investment advice.