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Japan Paves Way for Increased Domestic Web3 Investment Through Crypto Asset Integration

Japan is setting its sights on boosting strategic domestic investments in Web3 startups by permitting limited partnership (LP) firms to acquire and retain crypto assets.

The Ministry of Economy, Trade and Industry (METI) in Japan has greenlit a bill aimed at fostering the establishment of new businesses and industries through increased domestic investments.

This is to be achieved by amending four key acts, notably the Act on Investment Limited Partnership Agreements. An excerpt from the revision states:

“We will take measures such as the addition of crypto assets to the assets that can be acquired and held by investment limited partnerships (LPS).”

This revision enables LPs in Japan to invest in medium-sized companies and startups involved in cryptocurrencies in exchange for a proportional share of the venture’s profits.

Consequently, the Web3 community in the region anticipates a surge in the emergence of crypto and blockchain startups originating in Japan.

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The amendments in other acts such as the Industrial Property Information and Training Center Act, the New Energy and Industrial Technology Development Organization Act, and the Industrial Competitiveness Enhancement Act further underscore Japan’s commitment to promoting innovation and stimulating domestic investment.

Prior to the approval of the bill, Japanese venture capital firms were barred from investing in crypto assets. Consequently, Web3 startups in Japan often sought support from overseas investors.

Masaaki Taira, a Japanese politician and member of the House of Representatives, announced the development:

“Cabinet decision has been made! Measures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships (LPS).”

Additionally, Japan is actively addressing legal issues pertaining to the issuance of a digital yen, slated for the spring of 2024.

A report released on Jan. 26 indicated that neither the Bank of Japan (BoJ) nor the government had officially confirmed the launch of the digital yen.

Any decision in this regard will be made following a national discussion, scheduled no sooner than 2026.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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