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Japan embraces cryptocurrencies: investment funds allowed to hold digital assets

Japan is working to enable venture capital firms and other investment funds to hold crypto assets directly, Bloomberg reports. The government of Japanese Prime Minister Fumio Kishida has agreed to submit a revised bill to implement the change, which marks a significant development in the country’s approach to cryptocurrency.

Japanese Prime Minister Kishida Supports Cryptocurrency Integration

A publication on the website of the Ministry of Economy, Trade and Industry (METI) reportedly stated that the cabinet led by Prime Minister Kishida approved the text of the bill on February 16th.ETC Miner

The bill seeks to partially amend Japan’s Industrial Competitiveness Enhancement Act, which provides for the inclusion of cryptocurrencies as qualifying assets that can be acquired and held by investment limited partnerships, and which are commonly used by venture capital firms to obtain capital for their investment activities.

According to Bloomberg, Kishida’s economic agenda to revitalize Japan includes a focus on supporting the growth of Web3 Inc. Japan is often considered to have strict regulations in the digital asset space compared to other regions.

However, the country has been gradually relaxing certain cryptocurrency rules regarding token listing and taxation. The government now plans to submit the bill to the current session of the Japanese parliament for discussion.

Amended regulations

If the proposed amendments are approved, it will pave the way for increased exposure to digital assets in the Japanese investment space. Investments in Web3 startups often involve terms for distributing tokens to backers, and cryptocurrencies are a means of exiting an investment early, rather than the traditional route like a stock market listing.

The move marks a significant shift in Japan’s regulatory environment, demonstrating a growing recognition of the potential benefits and importance of digital assets in the investment ecosystem.

The revised bill aims to provide greater flexibility and opportunities for venture capital firms and investment funds to participate in cryptocurrencies, in line with the country’s broader goal of promoting innovation and economic growth.

Market participants and industry stakeholders will be closely watching the bill’s progress through the Diet as Japan takes steps to include digital assets in its investment universe.

The outcome of the upcoming debate could impact the future trajectory of Japanese regulation and its positioning in the global blockchain and digital space.

The global cryptocurrency market has achieved a significant milestone with a total market capitalization of over $1.92 trillion. The figure represents the total value of all cryptocurrencies in circulation.

The market capitalization has changed slightly by 0.88% over the past 24 hours, making the market environment relatively stable. However, compared to a year ago, the market capitalization is up a whopping 76.87%.

Bitcoin continues to dominate as the largest cryptocurrency by market capitalization. Bitcoin’s market capitalization now stands at $1.02 trillion, which is about 53% of the total cryptocurrency market.



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