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Japan may allow investment funds to hold Crypto, Bitcoin price hit record high
The government now plans to submit the bill for debate in the current session of the Diet, Japan’s parliament.
Japan inched closer to allowing venture capital firms and other investment funds to hold digital assets directly, after Prime Minister Fumio Kishida’s administration agreed to submit a revised bill to implement the change.
His cabinet approved the text of a bill on Feb. 16 that seeks to partially amend the country’s industrial competitiveness enhancement act, according to a statement published on the Ministry of Economy, Trade and Industry’s website. The bill states that “measures will be taken to add cryptoassets to the list of assets that can be acquired and held by investment limited partnerships,” referring to a vehicle used by venture capital firms to secure capital for investments.
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Kishida’s agenda for reinvigorating Japan’s economy includes support for the growth of so-called web3 firms, a term that refers to a future, decentralized version of the internet underpinned by blockchain technology. Compared to other regions Japan is viewed as having strict regulations for the digital-asset sector, but has moved toward easing some crypto rules in areas such as token listings and taxation.
The government now plans to submit the bill for debate in the current session of the Diet, Japan’s parliament.
Should the amendment be approved, the move would open up Japan’s investment sector to greater exposure in digital assets. Investments in web3 startups typically include clauses that allocate tokens to backers, with cryptocurrencies acting as a way to exit bets earlier than provided by traditional routes such as a stock market listing.
