Technology

Japan’s Bold Move: Boosting VC Investments in Web3 Companies With Cryptocurrency Acquisition Bill




Japan’s Government to Amend LPS Laws to Allow Cryptocurrency Acquisition

Japan’s Government to Amend LPS Laws to Allow Cryptocurrency Acquisition

Japan’s government has announced plans to amend Limited Partnership Fund (LPS) laws to allow for the acquisition and holding of cryptocurrencies. This move is aimed at simplifying investment processes and supporting Web3 businesses, which will ultimately boost domestic startups.

The Ministry of Economy, Trade and Industry revealed the cabinet decision to alter the LPS law on February 16, 2024. This change is expected to be a significant step in supporting the development of Web3 enterprises in Japan.

With this modification, LPS will now be permitted to hold cryptocurrencies as assets. This adjustment is anticipated to reduce barriers for Japanese venture capital firms looking to invest in projects that issue cryptocurrencies, making it easier for Web3 businesses in Japan to secure financing.

Previously, the rules only allowed LPS to transfer stocks and similar instruments to investors, excluding cryptocurrencies. This limited funding options for Web3 enterprises, which are unable to issue traditional shares.

Pioneers in the Web3 field, such as Hiro Kunimitsu, CEO of Thirdverse, have praised the government’s decision. Kunimitsu highlighted the challenges faced by Web3 initiatives in obtaining domestic venture capital financing under the existing regulatory framework and expressed optimism that the new law will support the growth of Web3 companies in Japan.

This legislative reform is expected to not only benefit LPS by increasing investment opportunities but also align with Japan’s broader goal of embracing Web3 technology and enterprises. The proposal will be presented to the 213th regular session of the National Diet as part of efforts to enhance Japan’s industrial competitiveness and promote the establishment of new businesses.

Overall, the decision to amend LPS laws to allow for cryptocurrency acquisition is a positive development for the investment landscape in Japan, particularly for Web3 startups seeking funding.


Related posts

Unleashing the Power of AI Recommendations: Unveiling ChatGPT’s Chat Mastery and Bias-Beating Tactics!

George Rodriguez

Unveiling the Future: Samsung Introduces Galaxy AI for an Exceptional Tomorrow

George Rodriguez

Revolutionizing Finance: Unveiling the Future with Quantum, AI, and Green Innovations!

George Rodriguez