Recently, the Japanese government officially allowed startups to raise funds through cryptocurrencies instead of stocks, aiming to diversify funding sources for Japanese startups and promote the development of digital asset-related products and services.
However, this new regulation only applies to “Limited Partnership (LPS)” funds – funds used to invest in securities of startup companies. LPS funds are permitted to use cryptocurrencies for investment in startups, and conversely, these startups can also receive cryptocurrency from LPS funds.
It’s worth noting that Japan has been a pioneer in legalizing cryptocurrencies as private assets and has set strict regulations for this asset class.
Previously, Japan had also integrated Web3 technology and promoted the cryptocurrency sector, including sponsoring Metaverse and NFT projects, lifting the ban on foreign stablecoins, and granting tax exemptions to token issuers.
Japan’s increasing openness to cryptocurrencies has motivated leading exchange Binance to re-enter the Japanese market through the acquisition of 100% of Sakura Exchange BitCoin (SEBC). Binance’s Japanese branch currently lists 34 types of tokens but plans to increase this number to 100 in the near future.
These recent moves by the Japanese government are expected to boost the growth of the cryptocurrency market and contribute to the development of the global cryptocurrency ecosystem.