Japan seeks to allow certain VCs to invest directly in crypto and Web3 startups
Quick Take: The proposed revision to existing law, if enacted, could be a huge opportunity for Web3 startups in Japan, one local expert said.
The ministry said in a Friday announcement that the approved revision, which contains amendments to the Act on Strengthening Industrial Competitiveness , would expand strategic investment to provide support for local startups and medium-sized companies. Such revision would allow venture capital firms to invest in projects that only issue cryptocurrencies, local news outlet Coinpost reported on Saturday.
Following the cabinet approval, the bill has been submitted to the legislative body and will be deliberated upon, the ministry said in the statement.
Limited partnerships in Japan often serve the purpose of investing in unlisted companies, which has become a common measure for VCs to invest in startups, according to local news outlet Coinpost .
“Under Japanese rules up until now, VCs were not able to invest in crypto assets,” Hiro Kunimitsu, founder and CEO of Gumi Inc., wrote in an X post . Gumi is a Japanese game development firm that has launched its own blockchain investment fund, gumi Cryptos Capital.
Kunimitsu explained in his X post that Japanese crypto projects had to source capital from foreign venture capitals, which has been a huge obstacle for funding. “I think that the fact that Japanese VCs can now invest will be a big opportunity for many Web3 startups from Japan,” Kunimitsu said.
Under Prime Minister Fumio Kishida’s “new capitalism” policy, Japan has been pushing to cultivate its Web3 industry. In December, the Japanese cabinet approved a revision to its tax regime that could exclude companies from paying taxes on unrealized profits from crypto.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Vitalik: From Prediction Markets to Information Finance
Prediction markets are just a precursor in a more popular field, with the potential to be applied to social media, science, news, governance, and other areas, categorized as "information finance."
Dogen 200% Spike Captures Attention, Ethereum Targets $5K, Polygon Faces Market Pressure
Analytics Firm Announces Important Names and Altcoins to Follow From Now On! Who's on the List?
Layergg shared the important names and altcoin projects to follow from the fourth quarter of 2024 to 2025.
ETH Price Shifts Bullish Amid Monumental ETH ETF Inflows