Japan allows venture capital funds to invest in cryptocurrencies and Web 3.0 startups

Until now, according to local law, venture capitalists could not invest in crypto assets

19.02.2024 - 13:59

197

3 min

What’s new? Japan’s Cabinet has approved a proposal to add cryptocurrencies to the list of assets that local investment limited partnerships can buy or hold. The bill, which contains amendments to the Act on Strengthening Industrial Competitiveness, would expand strategic investments to support local Web 3.0 startups and mid-sized companies. This is according to a statement from Japan’s Ministry of Economy, Trade and Industry (METI).

Information on METI’s website

What else is known? Founder and CEO of game development company Gumi Inc. Hiro Kunimitsu noted that previously, under Japanese law, venture capital funds could not invest in crypto assets. He explained that local crypto projects had to raise capital from foreign funds, which was a huge barrier to funding.

According to Kunimitsu, the fact that Japanese venture capital funds can now invest in crypto assets will be a big opportunity for many of the country’s Web 3.0 startups.

Source: Twitter.com

Earlier this month, Japan’s regulator urged the country’s financial institutions to step up monitoring of P2P trading to protect users. According to the country’s National Police Agency, the damage from illegal money transfers is mostly related to digital assets.

US, Korea, and Japan have begun jointly developing measures to combat crypto hackers from the DPRK

Assets obtained by North Korean hackers are being used to fund the development of weapons of mass destruction

Japan will abolish tax on unrealized gains in cryptocurrencies for legal entities starting April 1 this year. According to the Cabinet, this will attract startups and institutional investors to the country.

Author: