Japanese Venture Capital Companies Allowed to Buy Crypto

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The Japanese government has signaled its intention to legalize digital currencies, with plans to officially recognize stablecoins as a form of payment first known in 2022. These tokens have been considered electronic money since 2023, as announced by Japan’s Ministry of Economy, Trade and Industry last week.

The Cabinet has approved a bill that will allow investment funds and venture capital firms to invest in digital currencies.

Along with the legalization of stablecoins, the government is also working on developing regulations for startups involved in creating Web3 projects.

The Nikkei agency first reported on Japan’s plan to relax restrictions on cryptocurrency investments for venture capital companies in September 2023, giving them the ability to fund blockchain startups.

The bill has been submitted to Parliament for consideration and if passed, it will bring about changes to Japan’s laws on industrial competition.

This decision is expected to stimulate the growth of startups within Japan’s jurisdiction, providing a boost to the country’s economy.