The Japanese government recently approved a bill that would allow limited partnership companies (LP) to acquire and hold crypto assets. The move aims to boost strategic local investments in Web3 startups.
Japan’s Ministry of Economy, Trade and Industry has amended four key laws, including the Limited Investment Partnership Agreements Act, to encourage the creation of new businesses and industries through increased domestic investments. The revised bill provides for measures such as adding cryptocurrency assets to assets that can be acquired and retained through limited investment partnerships (LPs).”
This amendment now allows limited companies in Japan to invest in medium-sized companies and startups that deal with cryptocurrencies. They will receive a proportionate share of the project’s profits in exchange for their investment. The move is expected to encourage the emergence of new crypto and blockchain startups in Japan, thus strengthening the region’s web3 community.
The Industrial Property Information and Training Center Act, the New Energy Development Organization and Industrial Technology Law, and the Industrial Competitiveness Promotion Act are amendments introduced by Japan to encourage innovation and encourage domestic investment.
Prior to the approval of this bill, Japanese venture capital firms were not allowed to invest in crypto assets. This has led to Web3 startups in Japan seeking support from foreign investors. Moreover, Japan is also working to resolve legal issues related to the launch of the digital yen in the spring of 2024.
However, a report published on January 26 said neither the Bank of Japan nor the government has officially confirmed the launch of the digital yen. Any decision on this will be made after a national debate, which is not expected to happen before 2026.
