Japan To Allow Startups To Raise Funds Using Crypto

The Japanese government reportedly plans to allow startups to raise public funds by issuing crypto assets, such as currencies, instead of stocks.

This updated system applies to Investment Business Limited Partnerships (LPS). Japan has been slow to adopt digital assets compared to the rest of the world, but this has changed in recent months.

The Financial Services Agency (FSA), Japan’s primary financial regulatory authority, made a significant move on August 31 by seeking to amend the tax code related to cryptocurrencies. This aims to exempt local businesses from the year-end “unrealized gains” tax on cryptocurrencies.

The government intends to submit the necessary legal revisions to the parliament as early as 2024.

During the WebX conference in Tokyo, Japanese Prime Minister Fumio Kishida emphasized the importance of nurturing the Web3 industry and its potential to revolutionize the internet and bring about positive social change.

Earlier in April, the Japanese Liberal Democratic Party’s Web3 project team prepared a whitepaper to suggest ways to expand the Web3 industry in line with the prime minister’s national strategy.

The Japanese Web3 team aims to overcome the bureaucratic processes to formulate regulations covering the NFTs to decentralized autonomous organizations (DAOs).

Meanwhile, Binance has confirmed that it will be offering its services to crypto users in Japan from August onwards. This comes after acquiring the local exchange platform Sakura Exchange Bitcoin in November 2022, which paved the way for Binance’s return to the country.