The amendment allows startups to invest from the fund in exchange for digital assets instead of traditional stocks or securities.
The Japanese government will adjust its regulatory framework to enable startups to raise funds by issuing digital assets to investors, Nikkei reported.
The revision applies to startups that receive investments from investment funds that may receive shares in digital assets instead of traditional stocks or securities. The decision highlights Japan's efforts to diversify funding platforms for its domestic startups to adapt to the global trend of embracing digital assets.
Crypto-friendly government
The development comes on the heels of a series of crypto-friendly initiatives by the Japanese government, particularly under Prime Minister Fumio Kishida’s administration. In his speech at the WebX Asia conference, Kishida stressed the government’s commitment to promoting Web3 as a disruptive force that can spur social transformation, in line with his broader vision of fostering a “new capitalism.”
Japanese cryptocurrency exchanges, led by the Japan Virtual and Crypto Asset Exchange Association (JVCEA), have also been pushing for looser regulation in the country. Despite maintaining strict cryptocurrency regulation, Japan has also made great strides in branding itself as a crypto-friendly country, lifting its ban on foreign-issued stablecoins, launching a central bank digital currency pilot program, and funding metaverse and NFT-related projects.
However, Japan’s approach to cryptocurrency regulation has been a delicate balance. Despite crypto-friendly moves, the regulatory framework has also been tightened in areas such as the sharing of customer information by cryptocurrency exchanges to curb money laundering.
The latest policy shift, which provides startups with the option to issue crypto assets for financing, could be a turning point for Japan in its journey toward becoming a crypto-friendly nation. Not only does it mark a leap forward in the country’s cryptocurrency regulatory landscape, but it also highlights the tangible ways in which digital assets are reshaping traditional financial mechanisms. #日本 #监管框架
