Japan Grants VC Firms Direct Crypto Investment Approval

Japan may have officially opened its doors to venture capital firms that are looking to foray into the lucrative realm of crypto investments. This follows after the Ministry of Economy, Trade and Industry announced on Friday, the decision to include crypto assets (virtual currency) in the list of assets that local investment limited partnerships (LPS) may acquire or hold.

It might be worth noting that the latest decision follows a revised proposal containing amendments to the Act on Strengthening Industrial Competitiveness. According to a local report by Coinpost, the Cabinet-approved bill will go a long way in helping local startups and medium-sized companies. However, that in itself is still subject to further deliberation and decision on the bill by the legislature.

Nonetheless, the Cabinet’s decision has set the tone for a potential legal reform that is set to allow Japanese venture capital firms (VCs) to invest in projects that only issue virtual currencies.

The announcement has been greeted with positivity from crypto enthusiasts and other industry stakeholders. More importantly, Japan’s Web 3.0 companies may now enjoy better access to the funds needed to conduct business.

Is Japan Gradually Easing Stance on Crypto?

Notably, the recent approval marks a monumental shift in the country’s stance towards digital assets, heralding a new era of innovation and opportunity.

Before now, VCs commonly invested in startup companies in the form of LPS, as they can invest with their liability limited to the amount invested. However, previous rules did not allow for Web 3.0 companies to receive investments from LPS that weren’t only stocks. So, such Web 3.0 startups had to seek funds from overseas VCs, which, according to Thirdverse CEO Kunimitsu, was a major entry barrier for most of these startups.

Now, with the green light given to VC firms to directly invest in cryptocurrencies, Japan is poised to lead the charge in an ongoing global revolution of digital assets.

The decision is expected to unleash a wave of capital into the crypto market, providing a much-needed injection of liquidity and driving further adoption of blockchain technology. Venture capital firms themselves, well known for their risk-taking appetite and knack for spotting emerging trends, may just be readying to become key players in shaping the future of finance.

Overall, Japan’s decision to embrace crypto investments is a bold step forward into the unknown. With venture capital firms now at the helm, the future of finance has never looked more promising – and uncertain – than it does today.