TL;DR:
- Japanese Cabinet approves expansion of VC investment into crypto and Web3 startups
- Local startups gain access to domestic funding, reducing reliance on foreign capital
In a significant move aimed at fostering innovation and bolstering its digital economy, the Japanese cabinet has given the green light to a proposal permitting certain venture capital firms to directly invest in cryptocurrency and Web3 startups. The Ministry of Economy, Trade and Industry announced that the cabinet had approved amendments to the Act on Strengthening Industrial Competitiveness, broadening investment horizons and providing vital support to local ventures venturing into the dynamic realm of digital assets and decentralized technologies.
The approved revision streamlines the investment process for venture capital firms, enabling them to participate in projects that exclusively issue cryptocurrencies, reducing the need for local crypto projects to seek funding from overseas venture capitals. Additionally, Prime Minister Fumio Kishida’s “new capitalism” policy underscores Japan’s commitment to nurturing its Web3 industry, with efforts aimed at accelerating innovation and driving growth in the digital economy. If ratified, the amendments would represent a significant milestone in Japan’s regulatory landscape, offering a conducive environment for investment in the crypto and Web3 space.
Overall, this decision represents a significant shift in Japan’s investment landscape, opening doors for local startups and medium-sized companies to thrive in the burgeoning crypto and blockchain sectors, ultimately driving economic expansion and innovation in the country’s digital economy.
