- February 20, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
According to a Bloomberg report, Japan is progressing towards enabling venture capital firms and other investment funds to hold crypto assets directly. Prime Minister Fumio Kishida’s administration has agreed to submit a revised bill to implement this change, marking a significant development in the country’s approach to cryptocurrencies.
Prime Minister Kishida Backs Crypto Integration
Per the report, the cabinet under Prime Minister Kishida approved the bill’s text on February 16, as stated in a publication on the Ministry of Economy, Trade and Industry’s website.
The bill aims to partially amend Japan’s Industrial Competitiveness Enhancement Act, with provisions to include crypto as eligible assets that can be acquired and held by investment limited partnerships, commonly used by venture capital firms to secure capital for their investment activities.
According to Bloomberg, Kishida’s economic agenda for revitalizing Japan includes a focus on supporting the growth of Web3 firms. Compared to other regions, Japan is often regarded as having strict regulations in the digital asset sector.
However, the country has been gradually easing certain crypto rules concerning token listings and taxation. The government now plans to submit the bill for discussion in the current session of the Diet, Japan’s parliament.
Revamped Regulations
If the proposed amendment receives approval, it would pave the way for increased exposure to digital assets within Japan’s investment sector. Investments in Web3 startups often involve clauses that allocate tokens to backers, and cryptocurrencies serve as a means for an early exit from investments, as opposed to traditional routes like stock market listings.
The move signals a notable shift in Japan’s regulatory landscape, indicating a growing recognition of the potential benefits and importance of digital assets within the investment ecosystem.
The revised bill aims to provide venture capital firms and investment funds with greater flexibility and opportunities to engage with cryptocurrencies, aligning with the country’s broader goal of fostering innovation and economic growth.
As Japan takes steps towards embracing digital assets in its investment landscape, market participants and industry stakeholders will closely monitor the bill’s progress through the Diet.
The outcome of the upcoming debate could shape the future trajectory of Japan’s regulations and its positioning in the global blockchain and digital landscape.
The global cryptocurrency market has achieved a significant milestone, surpassing a total market capitalization of $1.92 trillion. This figure represents the combined value of all cryptocurrencies in circulation.
Over the past 24 hours, the market cap has experienced a slight 0.88% change, indicating a relatively stable market environment. However, compared to one year ago, the market cap has witnessed a remarkable surge of 76.87%.
Bitcoin, the largest cryptocurrency in the market capitalization, continues to maintain its dominant position. Bitcoin’s market cap currently stands at $1.02 trillion, representing approximately 53% of the total cryptocurrency market.
Featured image from Shutterstock, chart from TradingView.com
