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A Strategic Move for Investment Environment in Japan
In a notable development, the Japanese cabinet has given the green light for local venture capital firms to include cryptocurrencies in their investment portfolios. This decision, announced by the Ministry of Economy, Trade and Industry, provides much-needed regulatory clarity for VCs engaged in the crypto space.
Bolstering the Web3 Startup Scene
The amendment to the Act on Strengthening Industrial Competitiveness signifies a significant policy shift, empowering venture capital firms to invest directly in projects issuing cryptocurrencies. Hiro Kunimitsu, founder and CEO of Gumi Inc., emphasizes the transformative impact of this decision, opening doors for Japanese startups to access domestic funding avenues previously limited.
Prime Minister’s Vision for Economic Growth
This move aligns with Prime Minister Fumio Kishida’s vision for “new capitalism,” focusing on cultivating Japan’s web3 industry. It follows a series of policy changes, including December’s revision to the tax regime, aimed at incentivizing innovation and fostering economic growth.
Setting Precedents for Regulatory Frameworks
The legislative change, pending deliberation, has the potential to reshape venture capital dynamics within Japan’s burgeoning web3 domain. Moreover, it sets a precedent for regulatory frameworks globally, reflecting the increasing integration of cryptocurrencies into mainstream investment portfolios.
Measures to Protect Users and Enhance Security
Amidst this regulatory shift, Japan’s Financial Services Agency (FSA) and National Policing Agency (NPA) are intensifying efforts to protect users from unlawful transfers involving cryptocurrencies. Enhanced surveillance measures and initiatives aimed at bolstering user protection underscore Japan’s commitment to fostering a secure and robust crypto ecosystem.
This legislative change, now awaiting deliberation in the legislative body, could significantly impact how venture capital operates within the web3 domain in Japan, potentially setting a precedent for other nations to follow.
Moreover, the timing of this decision is particularly noteworthy, coming shortly after Japan’s top financial regulator, the Financial Services Agency (FSA), proposed measures to protect users from unlawful transfers, including those involving cryptocurrencies.
Accordingly, the Financial Services Agency (FSA) and the National Policing Agency (NPA) are urging banks to bolster user protection measures. To accomplish this, both agencies are implementing a range of initiatives, one of which mandates banks to intensify their surveillance of suspicious transactions heading toward cryptocurrency exchange providers.
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