Japan aims to boost strategic domestic investments into Web3 startups by permitting limited partnership (LP) firms to acquire and retain crypto assets.
The Ministry of Economy, Trade and Industry (METI) in Japan has greenlit a bill aimed at fostering the creation of new businesses and industries. This initiative involves amending four key acts, including the Act on Investment Limited Partnership Agreements. A rough translation of the revision indicates:
“We will take measures such as the addition of crypto assets to the assets that can be acquired and held by investment limited partnerships (LPS).”
The amendment enables LPs in Japan to invest in medium-sized companies and startups involved in cryptocurrencies, in return for a proportionate share of the venture’s profits. This move is anticipated to spur the growth of crypto and blockchain startups originating in Japan within the Web3 community.
The revisions in the Industrial Property Information and Training Center Act, the New Energy and Industrial Technology Development Organization Act, and the Industrial Competitiveness Enhancement Act complement Japan’s efforts to encourage innovation and bolster domestic investment.
Prior to the bill’s approval, Japanese venture capital firms were barred from investing in crypto assets, prompting many Web3 startups in Japan to seek support from overseas investors. Masaaki Taira, a Japanese politician and member of the House of Representatives, announced the milestone:
“Cabinet decision has been made! Measures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS).”
Japan is also addressing legal challenges related to the issuance of a digital yen, expected in spring 2024. However, official confirmation from the Bank of Japan (BoJ) or the government is pending, with any decision contingent on a national discussion slated for no earlier than 2026.
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