TLDR:
Japan has approved a bill that allows domestic venture capital and investment funds to invest in crypto assets, marking a significant step towards embracing digital asset innovation. The move aims to promote new businesses and industry investments, support startups, and unlock domestic capital for Web3 startups. The country is also piloting a digital yen, showing a commitment to blockchain innovation through regulation.
Japan approved a bill that adds crypto assets to the list of permissible investments for domestic venture capital and investment funds.
The move represents a major step in embracing digital asset innovation by the Asian tech powerhouse.
Japan has already implemented frameworks around stablecoins and outlined plans to promote Web3 technology. The country has also maintained tough stances on user protection within the space.
The newly approved bill would allow venture capital firms to invest in and acquire crypto assets. The amended Industrial Competitiveness Enhancement Act aims to promote the creation of new businesses and investment in industry while providing intensive support to medium-sized companies and startups, per officials.
The Ministry of Economy, Trade, and Industry (METI), which approved the revision, specified that it covers the addition of crypto assets to the list of permissible holdings under investment limited partnerships (LPs).
Previously, Japanese VC firms faced prohibitions on crypto-related investments – forcing local Web3 startups to seek funding from overseas backers in many cases. Industry members hope the deregulation unlocks domestic capital to fuel innovation.
The developments fall in line with Japan’s approach of promoting blockchain innovation through regulation rather than restriction. With the country also gearing up to pilot a digital yen as early as next spring, adoption efforts appear poised to accelerate.
