Crypto-Backed Startup Funding Gets Japanese Government Approval

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Crypto-Backed Startup Funding Gets Japanese Government Approval

In a groundbreaking development, the Japanese government is set to allow startups to leverage crypto assets for fundraising, a move that diverges from the traditional method of issuing stocks, as reported by local media outlets.

This innovative approach applies specifically to Investment Business Limited Partnerships (LPS), a category of funds that is witnessing a regulatory transformation in Japan. Despite a relatively slow start in adopting digital assets compared to other nations, Japan has been steadily shifting its stance in recent times, embracing the potential of cryptocurrencies.

The Financial Services Agency (FSA), Japan’s chief financial regulatory body, took a decisive step on August 31, initiating amendments to the cryptocurrency-related tax code. This strategic move aims to relieve local enterprises from the burden of the “unrealized gains” tax levied on cryptocurrencies at the end of the year, signaling a more proactive engagement in crypto regulation.

During the inaugural day of the WebX conference held in Tokyo, Prime Minister Fumio Kishida underscored Japan’s dedication to nurturing the Web3 sector. 

 

He emphasized the transformative power of Web3 technology in reshaping the internet landscape and instigating societal advancements.

In a related development, Binance, a global crypto powerhouse, announced its decision to extend its offerings to the Japanese crypto community starting August. This announcement follows Binance’s acquisition of the domestic exchange entity, Sakura Exchange Bitcoin, in November 2022, a strategic move that facilitated its reintegration into the Japanese market.

 

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