Japan Proposes New Legislation to Allow Investment Funds to Hold Crypto Assets
If newly proposed legislation passes in Japan, investment funds and venture capital firms will be able to directly hold digital assets. The Japanese Prime Minister Fumio Kishidaโs administration is proposing revised legislation that would lift the current restriction on holding cryptocurrencies for these entities. The proposal aims to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS), which are funds that invest in unlisted companies and startups. This move is part of Kishidaโs efforts to revive Japanโs economy and support Web3 businesses.
Huge Opportunity for Web3 Startups
The proposed legislation has been widely welcomed, with Hiro Kunimitsu, CEO of Thirdverse, a Japan-based virtual reality gaming company, calling it โwonderful.โ He explains that under the current rules, venture capitalists in Japan were unable to invest in crypto assets. This posed a significant hurdle for projects that issued only crypto assets without stocks. Now, with the potential for Japanese VCs to invest in such projects, Kunimitsu believes it will create a big opportunity for many Web3 startups to emerge from Japan.
Hot Take: Boosting Innovation and Economic Growth
If this legislation passes, it could have several positive implications for the crypto industry in Japan:
- Increased investment: Allowing investment funds and venture capital firms to hold crypto assets directly will likely lead to a surge in investment in the crypto space.
- Support for Web3 startups: The proposed legislation will remove a major obstacle for Web3 startups seeking funding from Japanese VCs.
- Economic revival: By promoting innovation and supporting emerging technologies like cryptocurrencies, Japan aims to revitalize its economy and position itself as a leader in the digital asset space.
If implemented successfully, this legislation could pave the way for further crypto-friendly regulations in Japan and potentially attract more global investors to the countryโs thriving crypto ecosystem.
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