Japan Plans to Amend Laws to Support Web3 Businesses
Japan’s government intends to amend Limited Partnership Funds (LPS) laws to facilitate the acquisition and holding of cryptocurrencies. The goal is to simplify investment processes and support Web3 businesses, ultimately boosting domestic startups.
Modification to Allow LPS Ownership of Cryptocurrencies
The Ministry of Economy, Trade and Industry announced a cabinet decision on February 16, 2024, regarding the alteration of LPS laws. This modification will enable LPS to possess and hold cryptocurrencies as assets. The change aims to reduce barriers for Japanese venture capital firms seeking to participate in cryptocurrency-focused projects, making it easier for Web3 enterprises in Japan to secure financing.
Positive Impact on Web3 Enterprises
Hiro Kunimitsu, CEO of Thirdverse, and other pioneers in the Web3 field have welcomed this development. They have highlighted the challenges faced by Web3 initiatives in obtaining domestic venture capital financing under the current regulatory framework. With optimism, they hope that the new law will encourage the establishment of Web3 companies in Japan.
Supporting Japan’s Industrial Competitiveness
This legislative reform not only benefits LPS by expanding investment opportunities but also aligns with Japan’s broader objective of embracing Web3 technology and enterprises. The amendment will be presented at the 213th regular session of the National Diet as part of efforts to enhance Japan’s industrial competitiveness and foster the establishment of new businesses.
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