Japan Moves Closer to Allowing Investment Funds to Hold Crypto Assets
A recent report by Bloomberg reveals that Japan is making progress in its efforts to enable venture capital firms and other investment funds to directly hold crypto assets. Prime Minister Fumio Kishida’s administration has agreed to submit a revised bill that would implement this change, marking a significant development in the country’s approach to cryptocurrencies.
Prime Minister Kishida Backs Crypto Integration
The cabinet under Prime Minister Kishida approved the text of the bill on February 16, according to a publication on the Ministry of Economy, Trade and Industry’s website. The bill aims to amend Japan’s Industrial Competitiveness Enhancement Act, allowing investment limited partnerships, commonly used by venture capital firms, to acquire and hold crypto assets.
Prime Minister Kishida’s economic agenda for revitalizing Japan includes supporting the growth of Web3 firms. Despite having strict regulations in the digital asset sector, Japan has been gradually easing certain crypto rules concerning token listings and taxation. The government plans to submit the bill for discussion in the current session of the Diet, Japan’s parliament.
Revamped Regulations
If approved, the proposed amendment would increase exposure to digital assets within Japan’s investment sector. This is particularly important for investments in Web3 startups, where tokens are often allocated to backers and cryptocurrencies serve as an early exit strategy. The move reflects a growing recognition of the benefits and importance of digital assets in Japan’s investment ecosystem.
The revised bill aims to provide greater flexibility and opportunities for venture capital firms and investment funds to engage with cryptocurrencies. It aligns with Japan’s broader goal of fostering innovation and economic growth.
As Japan takes steps towards embracing digital assets in its investment landscape, the outcome of the upcoming debate on the bill in the Diet will shape the future trajectory of Japan’s regulations and its position in the global blockchain and digital landscape.
The Global Cryptocurrency Market Surpasses $1.92 Trillion
The global cryptocurrency market has achieved a significant milestone, surpassing a total market capitalization of $1.92 trillion. This represents the combined value of all cryptocurrencies in circulation. Over the past 24 hours, the market cap has experienced a slight 0.88% change, indicating a relatively stable market environment. However, compared to one year ago, the market cap has seen a remarkable surge of 76.87%.
Bitcoin remains the largest cryptocurrency by market capitalization, with a current market cap of $1.02 trillion, accounting for approximately 53% of the total cryptocurrency market.
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