Japanese venture capital companies will be able to invest in crypto projects

The Ministry of Economy, Trade and Industry of Japan (METI) has approved a proposal to include cryptocurrencies in the list of assets that can be acquired and held by local investment institutions. This is stated in the relevant statement.

According to the adopted amendments to the Law on Limited Liability Partnerships (LPS), Japanese venture capital companies will now be able to invest in medium-sized firms and startups that work with cryptocurrencies. In return, young projects will have to give the partnership a proportional share of their profits.

Until now, venture capital funds in Japan have not been able to invest in projects involving cryptocurrencies. As a result, startups had to raise capital from foreign companies, which caused certain difficulties.

The latter decision, according to experts, should serve as an impetus for the emergence of many new Web3 projects in the country.

Japan is not the most attractive place for participants in the crypto industry. High taxation and strict regulation have led many crypto firms to decide to leave the country.

However, in the last six months, the authorities seem to be changing their minds about the digital asset market. So, at the end of June 2023, the authorities exempted token issuers from paying 30% tax on unrealized (paper) profits.

By the end of the year, it turned out that Japan could abolish all taxes for crypto companies. So far, such an initiative has only been included in the plans of the authorities for 2024.

In addition, the Asian country is developing its own digital national currency and may allow stablecoins to enter the country's domestic market. Earlier, it became known about the cooperation of the Binance crypto exchange with the Bank of Japan, MUTB. Together, they plan to issue "stable" coins by the end of 2024.

Source: https://ru.beincrypto.com/yaponskie-venchurnye-kompanii/