Japan is working to enable venture capital firms and other investment funds to directly hold crypto assets, according to Bloomberg. The government of Prime Minister Fumio Kishida has agreed to submit a revised bill to implement the change, marking a major development in the country’s approach to cryptocurrencies.
Japanese Prime Minister Kishida supports cryptocurrency integration
A publication on the Ministry of Economy, Trade and Industry's website reportedly said that the cabinet led by Prime Minister Kishida approved the text of the bill on February 16.
The bill seeks to partially amend Japan’s Industrial Competitiveness Enhancement Act to include cryptocurrencies as eligible assets that can be acquired and held by investment limited partnerships, and venture capital firms often use cryptocurrencies to obtain capital for their investment activities.
According to Bloomberg, Kishida’s agenda to revitalize Japan’s economy includes a focus on supporting the development of Web3 companies. Japan is generally considered to have strict regulations in the digital asset space compared to other regions.
However, the country has been gradually relaxing certain cryptocurrency rules regarding token listings and taxation. The government now plans to submit the bill to the current session of the Japanese parliament for discussion.
The revised regulations
If the proposed amendment is approved, it would pave the way for more exposure to digital assets in Japan’s investment landscape. Investments in Web3 startups often involve provisions for the distribution of tokens to backers, with cryptocurrencies serving as a means of exiting investments early, rather than traditional routes like stock market listings.
The move marks a notable shift in Japan’s regulatory environment, demonstrating growing recognition of the potential benefits and importance of digital assets in the investment ecosystem.
The revised bill aims to provide venture capital firms and investment funds with greater flexibility and opportunities to participate in cryptocurrencies, in line with the country’s broader goal of promoting innovation and economic growth.
As Japan takes steps to include digital assets in its investment universe, market participants and industry stakeholders will be closely watching the bill’s progress through Congress.
The outcome of the upcoming debate could impact the future trajectory of Japanese regulation and its positioning in the global blockchain and digital space.
The global cryptocurrency market has achieved a major milestone, with total market capitalization exceeding $1.92 trillion. The figure represents the total value of all cryptocurrencies in circulation.
In the past 24 hours, the market value has changed slightly by 0.88%, and the market environment is relatively stable. However, compared with a year ago, the market value has increased significantly by 76.87%.
Bitcoin continues to dominate as the largest cryptocurrency by market cap. Bitcoin's market cap is currently $1.02 trillion, accounting for approximately 53% of the total cryptocurrency market. #数字资产 #日本
