WEB3
by BSC News
February 19, 2024
This move is set to reshape how Web3 projects in Japan raise capital, as they can now attract funding from domestic venture capital firms.
Japan is introducing new avenues to venture capital firms, allowing them to invest directly in crypto-only projects.
The Ministry of Economy, Trade, and Industry has officially released a statement announcing the approval of limited partnership (LP) companies, governed by the Limited Partnership Act, to hold cryptocurrencies.
This decision marks a departure from the previous restrictions imposed by the 1998 Act, which prevented such firms from acquiring crypto assets. The implications of this regulatory shift are far-reaching for both Venture Capital firms and Web3 projects in Japan.
The ability to directly fund projects solely dealing in virtual currencies expands investment opportunities and potential returns in the rapidly evolving cryptocurrency sector.
This regulatory change is expected to empower venture capitalists to allocate capital more efficiently, fostering innovation and growth in Japan’s venture capital landscape.
Hiro Kunimitsu, CEO of Thirdverse, highlighted the significance of this move, stating that Australian venture capitalists had previously stepped in due to local restrictions, as some projects exclusively issued crypto tokens. Kunimitsu emphasized on Twitter that "this is a big step in the right direction."
The proposed amendment also promises to have a transformative impact on Web3 companies in Japan.
By reducing reliance on overseas investment and providing access to domestic funding, Web3 startups can accelerate their growth trajectories, contributing to a more robust ecosystem for innovation.
Through increased capital infusion, these companies can scale operations, develop groundbreaking technologies, and contribute significantly to Japan's digital economy.
Japan has been taking steps recently to cultivate its Web3 industry. Last December, Japan's cabinet agreed to revise its tax regime to exempt companies from paying taxes on unrealized crypto profits.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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