TLDR:
- Japan is considering allowing certain venture capital firms to invest directly in crypto and Web3 startups.
- The proposed revision could provide a significant opportunity for local startups and medium-sized companies in Japan.
Article Summary:
Japan is exploring the possibility of allowing venture capital firms to invest in cryptocurrencies and Web3 startups. This proposed revision to existing law, if enacted, could be a game-changer for the country’s startup ecosystem. The Ministry of Economy, Trade and Industry announced that the approved revision aims to expand strategic investment to support local startups and medium-sized companies. Currently, Japanese VCs were not able to invest in crypto assets, forcing Japanese crypto projects to seek capital from foreign venture capitals. This has been a significant obstacle to funding for many startups. With this potential change, Japanese VCs could now invest in crypto projects, presenting a significant opportunity for Web3 startups in Japan. Prime Minister Fumio Kishida’s “new capitalism” policy is driving Japan’s efforts to cultivate its Web3 industry. In a related development, the Japanese cabinet approved a tax regime revision in December that could exempt companies from paying taxes on unrealized profits from crypto. The proposal is currently under deliberation by the legislative body and could have a positive impact on the crypto investment landscape in Japan.
