Japan will allow startups to attract investments in cryptocurrency
Date: 2023-09-16 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
The Japanese government will relax the rules for funding startups and allow them to receive funding in cryptocurrency.
Once startups receive funding from investment funds, they will be able to issue cryptocurrencies instead of more traditional shares. Local media reported this. The new system applies to funds called investment limited partnerships (LPS).
The government plans to introduce a bill to amend the LPS Act in 2024. According to the new rules, virtual currencies and tokens (electronic securities) will also be added to investment goals. This will make it easier not only for individual investors to invest in crypto startups, but also for venture capitalists.
How crypto regulation has changed in Japan
Japan has acquired the status of an unattractive region for cryptocurrency companies. The main reason is high taxation and strict regulations. Because of this, many crypto firms left the country.
However, in recent months, Japanese authorities have shown growing support for cryptocurrency, improving the business climate for blockchain companies.
In particular, the country has begun revising the taxation of the crypto industry against the backdrop of an outflow of crypto companies from the country due to high taxes. As a result, token issuers were exempted from paying a 30% tax on unrealized (paper) profits. The country is also considering the possibility of admitting stablecoins to the domestic market and simplifying the requirements for listing tokens on exchanges.
Launch of the digital yen
In addition, Japanese authorities are working to launch a pilot program to test Central Bank Digital Currency (CBDC).
As part of the pilot program, the Bank of Japan is expected to conduct simulated transactions with private financial institutions in a test environment. As the Central Bank said, there are no plans to conduct real transactions between retailers and clients.
The program has two goals. The first is to check technical feasibility. The second involves leveraging the skills and knowledge of private businesses in terms of technology and operations to develop a CBDC ecosystem for eventual social implementation.
