A bill that permits investment funds and venture capital firms to own cryptocurrency assets was passed by the Japanese government. The law might increase funding for Web3 startups if it is approved by parliament.
The Ministry of Economy, Trade, and Industry stated on Friday that the Japanese cabinet has approved a measure adding cryptocurrency to the list of assets that the country’s venture capital firms and investment funds are allowed to purchase.
Japan has set the standard for the world in developing stablecoin regulations and has made efforts to advance Web3 while upholding strict user protections. According to a September 2023 Nikkei report, the nation intended to loosen regulations allowing venture capital firms to engage in cryptocurrency enterprises.
The modified bill will be introduced and discussed in the current Diet session of parliament after the cabinet approved the move. According to the modification, VCs might invest in Web3 firms in return for cryptocurrency assets.
“Promote the creation of new businesses and investment in industry” and “provide intensive support to medium-sized companies and startups that are the driving force of Japan’s economy” were the stated goals of the Industrial Competitiveness Enhancement Act amendment, according to the ministry.