Japan opens up Web3 investments to local VCs.
Japan aims to increase strategic local investments into Web3 startups by allowing limited partnership (LP) companies to own and hold crypto assets.
Japan's Ministry of Economy, Trade and Industry (METI) has approved a bill to reform four key measures, including the Investment Limited Partnership Agreements Act, to create new businesses and industries through domestic investments. The draft version of the revision reads as follows:
“We will take steps such as adding crypto assets to assets that can be purchased and held by investment limited partnerships (LPS).”
The amendment will allow LPs in Japan to invest in mid-sized companies and startups dealing with cryptocurrencies to receive a proportionate share of the proceeds of the coverage. Therefore, the Web3 community in the region expects the emergence of crypto and blockchain startups from Japan.
Related: Japanese regulator suggests ‘stopping' P2P transfers from fiat to crypto
Other reforms included in the Industrial Property Information and Training Center Act, the New Energy and Industrial Technology Development Organization Act, and the Industrial Competitiveness Enhancement Act further support Japan's intention to promote innovation and promote domestic investment.
Cabinet decision passed!
Steps will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS). #web3https://t.co/vyZfGowS8W
— Taira Masaki (@TAIRAMASAAKI) February 16, 2024
Before the bill was passed, Japanese venture capital firms were prohibited from investing in crypto assets. As a result, Web3 startups in Japan often lacked support from overseas investors. Masaki Taira, a Japanese politician and member of the House of Representatives, announced the development.
“Cabinet decision has been passed! Steps will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS).
In addition, Japan She is working to resolve legal issues related to issuing the digital yen in the spring of 2024. A report published on January 26 said that neither the Bank of Japan (BoJ) nor the government had officially confirmed the launch. The digital yen and any decision around it will be taken after a “national discussion”, which will happen soon before 2026.
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