Japan Allows Domestic Venture Capitalists to Invest in Web3 Startups
The Japanese cabinet has approved a proposal that allows domestic venture capitalists (VCs) to invest in Web3 startups, expanding opportunities for local projects. The Ministry of Economy, Trade and Industry (METI) disclosed this legal reform, which involves amendments to four key acts, including the Act on Investment Limited Partnership Agreement. This change aims to stimulate the development of startup companies and sectors by increasing domestic investments.
Key points:
- Japanese VCs can now invest in projects exclusively issuing virtual currencies.
- Limited partnerships (LPs) also benefit from this reform, as they can now invest in medium-sized companies and startups involved in cryptocurrencies.
- These amendments reduce barriers for Web3 companies in Japan and promote crypto adoption within the country.
Streamlining Japan’s Investment Environment
Japan is committed to improving its investment environment by streamlining bureaucratic processes and minimizing administrative obstacles. In addition to allowing domestic VCs to invest in Web3 startups, the Japanese cabinet recently approved a revision to the tax regime that exempts corporations from paying taxes on unrealized gains from cryptocurrencies held for an extended period.
Key points:
- This tax revision abolishes mark-to-market valuation for long-term cryptocurrency holdings and only taxes profits realized from the actual sale of cryptocurrency.
- The government’s commitment to fostering an environment conducive to web3 advancement aligns with Prime Minister Fumio Kishida’s vision for economic growth.
🔥 Hot Take: Japan Embraces Web3 Investment Opportunities 🔥
Japan’s approval of the proposal allowing domestic venture capitalists to invest in Web3 startups marks a significant step towards fostering innovation and growth in the country’s crypto and blockchain ecosystem. By reducing barriers and increasing investment opportunities, Japan is positioning itself as a favorable destination for web3 projects. This legal reform not only benefits Japanese venture capitalists but also supports the government’s goal of promoting crypto adoption within its borders. With streamlined bureaucratic processes and a tax regime that incentivizes long-term cryptocurrency holdings, Japan is paving the way for a thriving web3 industry.
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