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News

Japanese Crypto Support Bill Now Aims To Boost Digital Asset Industry

February 19, 2024 - Around 2 mins mins to read

Key Points:

  • Japan’s Cabinet approved a bill allowing direct cryptocurrency holdings by venture capital firms and investment funds.
  • The Japanese crypto support bill aims to boost industrial competitiveness with incentives for key sectors like technology and green energy.
Japan is making strides towards embracing digital assets more openly, with Prime Minister Fumio Kishida’s administration pushing forward a revised bill to allow venture capital firms and investment funds direct access to cryptocurrencies.
Japanese Crypto Support Bill Now Aims To Boost Digital Asset Industry

Japan Greenlights Direct Cryptocurrency Holdings for Investment Firms

The Cabinet approved the Japanese crypto support bill on Feb. 16, marking a significant shift in the country’s regulatory landscape towards digital currencies.

Part of a broader legislative proposal aimed at enhancing Japan’s industrial competitiveness, the Japanese crypto support bill includes provisions for tax incentives and financial support targeted at key sectors like electric vehicles, green technologies, and semiconductors. It will undergo deliberation in the Diet, Japan’s national legislature, during its 213th Ordinary Session.

The main objective of the bill is to stimulate business creation and strategic investment across various sectors, particularly in technology and green energy. Notably, the legislation permits investment limited partnerships, instrumental in private equity and venture capital, to include cryptocurrencies in their portfolios.

Japanese Crypto Support Bill to Enhance the Country’s Industrial Competitiveness

This move signifies a departure from Japan’s historically cautious approach to cryptocurrency regulation, aiming to align its economic strategies with the digital age and become an active player in the global digital assets market.

The the Japanese crypto support bill also reflects Kishida’s agenda to support the growth of web3 firms, which envision a decentralized internet underpinned by blockchain technology. Despite Japan’s reputation for strict regulations in the digital asset sector, recent developments show a willingness to ease certain crypto rules, such as token listings and taxation.

With plans to submit the bill for debate in the current Diet session, Japan could soon open its investment sector to greater exposure in digital assets, potentially benefiting Web3 startups seeking funding avenues beyond traditional routes.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

crypto

Fumio Kishida

Japan

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.