The Japanese government is reportedly planning to introduce a new system that would allow start-ups to raise funds through the issuance of cryptocurrencies instead of stocks. This move, if implemented, would mark a significant development in Japan’s approach to digital assets, as the country has historically lagged behind other nations in embracing cryptocurrencies. The updated system would primarily be applicable to a specific category of funds known as Investment Business Limited Partnerships (LPS), according to the Japanese financial news site, Nikkei.com.
In recent months, Japan has taken steps towards adopting a more proactive stance on cryptocurrency regulation. On August 31, the country’s primary financial regulatory authority, the Financial Services Agency (FSA), proposed amending the tax code related to cryptocurrencies to exempt local businesses from the year-end “unrealized gains” tax. This move is seen as part of the government’s efforts to encourage the growth of the crypto industry in Japan.
The commitment to fostering the Web3 industry was reiterated by Japanese Prime Minister Fumio Kishida during his keynote address at the WebX conference in Tokyo. He emphasized the potential of Web3 to transform the internet and bring about social change. This public endorsement from the country’s leader indicates a strong government backing for the development and adoption of blockchain technology and digital assets in Japan.
The cryptocurrency exchange Binance also recently announced its intention to offer its services to Japanese cryptocurrency users. This followed its acquisition of the local exchange platform Sakura Exchange Bitcoin (SEBC) in November 2022. The acquisition of this Japanese-registered crypto exchange service provider cleared the way for Binance to reenter the Japanese market and cater to the growing demand for cryptocurrencies in the country.
It is worth noting that Cointelegraph has reached out to the Japanese government for more details regarding the proposed system to raise funds through cryptocurrencies. However, as of now, no feedback has been received.
Overall, Japan’s newfound willingness to embrace cryptocurrencies and blockchain technology indicates a shift in its regulatory approach. With the potential introduction of a system allowing start-ups to raise public funds through cryptocurrencies, Japan’s crypto industry could experience significant growth and contribute to the country’s overall economic development.
To protect your crypto in a volatile market, experts recommend following best practices and utilizing secure storage solutions. It is important to stay informed about the latest trends and developments in the crypto industry to make informed investment decisions.
In conclusion, Japan’s plan to permit start-ups to raise funds through the issuance of cryptocurrencies reflects the country’s evolving stance on digital assets. The proposed system has the potential to unlock new opportunities for start-ups and stimulate the growth of Japan’s crypto industry. As the government takes a more active role in cryptocurrency regulation, it signals a positive shift towards embracing innovative technologies and fostering economic growth.
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