With the rise in the cryptocurrency market, many governments continue to take notable steps towards regulating the crypto space. According to an announcement made by the Ministry of Economy, Trade, and Industry on February 16th, the Japanese cabinet has approved a proposal to include cryptocurrencies in the list of assets that local limited partnerships can acquire or hold.
Notable Steps in Japan
The Ministry announced on February 16th that the approved revision, which includes changes to the Act on Strengthening Industrial Competitiveness, will expand strategic investment to support local ventures and mid-sized companies. According to the local news outlet Coinpost on February 17th, this revision will allow venture capital firms to invest in projects that issue cryptocurrencies.
Following the cabinet’s approval, the Ministry stated that the bill was submitted to the legislative body for discussion. Coinpost reports that in Japan, limited partnerships typically serve the purpose of investing in unlisted companies, which has become a common measure for venture capital firms to invest in startups.
Prominent Figures Make Noteworthy Statements
Hiro Kunimitsu, founder and CEO of Gumi Inc., shared his views on the matter in a post on social media platform X:
“Until now, Japanese regulations did not allow venture capital firms to invest in crypto assets.”
Gumi is a Japanese game development company that has launched its own blockchain investment fund, Gumi Cryptos Capital. In his post on X, Kunimitsu explained that Japanese crypto projects had to rely on foreign venture capital for funding, which was a significant barrier to financing:
“I believe the fact that Japanese venture capital firms can now invest will be a great opportunity for many Web3 initiatives in Japan.”
Under Prime Minister Fumio Kishida’s new capitalism policy, Japan is working to develop the Web3 industry. In December, the Japanese cabinet approved a revision to the tax regime that could prevent companies from paying taxes on unrealized gains from cryptocurrencies.
