- Recent developments suggested a growing openness to digital assets within Japan.
- This update will primarily apply to a specific category of funds known as Investment Business Limited Partnerships (LPS).
Japan is reportedly paving the way for startups to raise public funds using cryptocurrencies instead of traditional stocks. The country is making this significant shift in response to the evolving landscape of digital assets and investment opportunities.
This update will primarily apply to a specific category of funds known as Investment Business Limited Partnerships (LPS).
Introducing the change, the report by Nikkei said,
“The government relaxes regulations on the financing of startups. When startups receive investment from investment funds, they will be able to give crypto assets (virtual currencies) instead of stocks.”
For some time, Japan has been somewhat conservative in embracing cryptocurrencies and blockchain technology compared to other global players. However, recent developments suggested a growing openness to digital assets within the nation.
Japan’s increasing openness to digital assets signals cryptocurrency evolution
On 31 August, Japan’s primary financial regulatory authority, the Financial Services Agency (FSA), took a significant step by proposing amendments to the tax code related to cryptocurrencies. This move reflects Japan’s willingness to play a more active role in cryptocurrency regulation.
The proposed amendments aim to exempt local businesses from the year-end “unrealized gains” tax on cryptocurrencies, thus providing more favorable conditions for crypto-related activities.
Prime Minister Fumio Kishida emphasized Japan’s commitment to fostering the Web3 industry during a keynote address at the WebX conference in Tokyo.
He highlighted the transformative potential of Web3 technologies in reshaping the internet and driving social change, reaffirming the government’s dedication to supporting its growth.
In another notable development, leading cryptocurrency exchange Binance [BNB] announced its intention to serve Japanese crypto users starting in August.
This decision came following Binance’s acquisition of the local exchange platform Sakura Exchange Bitcoin in November 2022, which marked its reentry into the Japanese market.