TLDR:
Japanese cabinet approves cryptocurrencies for investment by venture capital firms. This regulatory clarity aims to boost strategic investment environment and support local startups and medium-sized companies.
The Japanese cabinet has approved the inclusion of cryptocurrencies among the assets that local investment limited partnerships (LP) firms can acquire or hold. This move, announced by the Ministry of Economy, Trade and Industry, provides venture capital firms engaged in crypto with more regulatory clarity.
The amendment to the Act on Strengthening Industrial Competitiveness allows VC firms to invest in projects that exclusively issue cryptocurrencies, creating substantial opportunities for the web3 startup scene in Japan. This aligns with Prime Minister Fumio Kishida’s “new capitalism” policy to cultivate the web3 industry and foster new business creation.
Japan’s Financial Services Agency and National Policing Agency are also taking measures to protect users from unlawful transfers involving cryptocurrencies, urging banks to enhance user protection and surveillance of suspicious transactions.
