Japan Embraces Crypto: Investment Funds Granted Authority to Hold Digital Assets

Japan is moving forward in allowing venture capital firms and other investment funds to directly hold cryptocurrency assets, as reported by Bloomberg. This decision comes as Prime Minister Fumio Kishida’s administration has agreed to present a revised bill to facilitate this change, marking a significant stride in the nation’s stance towards cryptocurrencies.

Backing Crypto Integration According to Bloomberg’s report, the cabinet under Prime Minister Kishida gave the green light to the bill’s text on February 16, as detailed in a publication on the Ministry of Economy, Trade and Industry’s website.

The bill aims to amend Japan’s Industrial Competitiveness Enhancement Act partially, with provisions that include cryptocurrencies as eligible assets that can be acquired and held by investment limited partnerships, commonly utilized by venture capital firms to secure capital for their investment ventures.

Prime Minister Kishida’s economic agenda for Japan’s revival includes a focus on supporting the growth of Web3 firms. While Japan has often been seen as having stringent regulations in the digital asset sector compared to other regions, there have been gradual relaxations in certain crypto rules concerning token listings and taxation. The government now intends to submit the bill for discussion in the current session of the Diet, Japan’s parliament.

Regulatory Overhaul Approval of the proposed amendment would open doors for increased involvement with digital assets within Japan’s investment landscape. Investments in Web3 startups frequently involve provisions that allot tokens to supporters, and cryptocurrencies offer an alternative route for early exits from investments compared to traditional avenues like stock market listings.

This move indicates a significant shift in Japan’s regulatory environment, signaling a growing acknowledgment of the potential benefits and significance of digital assets within the investment ecosystem.

The revised bill aims to provide venture capital firms and investment funds with more flexibility and opportunities to interact with cryptocurrencies, in line with the broader goal of fostering innovation and economic expansion in the country.

As Japan strides towards integrating digital assets into its investment framework, stakeholders and market participants will closely monitor the bill’s progression through the Diet. The outcome of the upcoming discussions could shape the future trajectory of Japan’s regulatory policies and its standing in the global blockchain and digital asset landscape.

Crypto Market Overview The global cryptocurrency market has reached a significant milestone, with a total market capitalization exceeding $1.92 trillion, representing the combined value of all cryptocurrencies in circulation.

Over the past 24 hours, the market cap has experienced a modest 0.88% change, indicating relative stability. However, compared to a year ago, the market cap has surged by an impressive 76.87%.

Bitcoin remains the dominant cryptocurrency, with a market cap of $1.02 trillion, constituting approximately 53% of the total cryptocurrency market.