Author: Qin Jin, Carbon Chain Value
On February 19, according to Bloomberg, the Japanese Prime Minister Fumio Kishida’s government approved a bill to enhance Japan’s industrial competitiveness on February 16.
According to a statement from Japan’s Ministry of Economy, Trade and Industry, the bill will take measures to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships. “Investment limited partnerships refer to venture capital companies. A tool used to secure investment capital."
The amendment to the "Industrial Competitiveness Strengthening Act" is a major change in national policy, directly allowing venture capital companies to invest in projects that specifically issue cryptocurrency. In other words, venture capital firms engaged in cryptocurrency investment now have clearer regulations. This measure aims to strengthen the strategic investment environment and provide more financial support to local start-ups and medium-sized enterprises.
Hiro Kunimitsu, founder and CEO of Japanese game development company Gumi Inc, said that before this, Japanese encryption projects had to seek funding from foreign venture capital, and this process was full of various obstacles. After the bill is passed, the ability of Japanese venture capital to invest in crypto assets is expected to create a large number of opportunities for the development of Web3 startups in Japan.
It is reported that Japan has been a global leader in formulating a stable currency regulatory framework and has expressed plans to promote Web3 while taking a tough stance on user protection. In September 2023, Nikkei reported that Japan plans to relax regulatory rules for venture capital companies to invest in crypto startups. The cabinet has now approved the measure, and the revised bill will be introduced and debated in this session of parliament. Following the revision, venture capital firms will provide funding to Web3 startups in exchange for crypto assets.
The clear goal of passing the amendment to the "Industrial Competitiveness Strengthening Act" is to "promote the creation of new companies and industrial investment" and to provide "strong support to medium-sized companies and start-up companies that are the driving force of Japan's economy." support". This is consistent with Japan's grand strategy of strengthening the country's economic driving force.
According to reports, this move is part of Japanese Prime Minister Fumio Kishida’s “new capitalism” policy. According to this policy, Japan has been actively cultivating the Web3 industry. The move follows the Cabinet's approval of revised tax rules in December last year. The revision could exempt companies from paying tax on unrealized profits from cryptocurrencies.
According to "Businesstimes" reports, Japanese Prime Minister Fumio Kishida's agenda to revitalize Japan's economy includes supporting the development of so-called Web3 enterprises. Web3 refers to the future decentralized Internet supported by blockchain technology. Japan is considered to have strict regulations on the digital asset industry compared to other regions, but it has begun to relax some cryptocurrency regulatory rules in areas such as token listings and taxation.
According to "Coindesk" reports, this legislative reform is currently awaiting review by the legislative body. It will have a significant impact on the way Japan's Web3 venture capital operates and may set a precedent for other countries.
In addition, the timing of this measure is particularly noteworthy, shortly after Japan’s top financial regulator, the Financial Services Agency (FSA), proposed measures to protect users from illegal transfers, including those involving cryptocurrency.
As a result, the Financial Services Agency and the National Police Agency (NPA) are urging banks to strengthen user protection measures. To achieve this goal, the two agencies are implementing a series of initiatives, one of which requires banks to increase monitoring of suspicious transactions flowing to cryptocurrency exchange providers.
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