- The bill has been presented to the parliament for debate and approval.
- Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.
Japan’s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved a bill that proposed amendments to Japan’s Industrial Competitiveness Enhancement Act. According to the bill,
“measures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.”
Following the approval, Japan will submit the bill for debate in the country’s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.
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Move Cements Japan’s Growing Role As A Capital Firms And Investment Funds
Japan has been making critical inroads in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.
On December 24, 2023, Japan’s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.
