Japan Advances Bill to Allow Venture Capital Firms to Hold Crypto Assets

The Japanese government's approval of a new bill could significantly boost investment in Web3 startups by allowing venture capital firms to hold crypto assets.

• The Japanese government is advancing a bill that would allow investment limited partnerships to acquire and hold cryptoassets, aiming to foster new business creation and strategic domestic investment.
• The bill, which now heads to Japan's national legislature, the Diet, includes tax incentives and financial support for strategic objectives, with a provision specifically for investment firms to directly hold cryptoassets.
• This legislative move is seen as a softening of Japan's regulatory stance on crypto, positioning Japan as a forward-thinking player in the global digital assets space.
• The inclusion of crypto assets in legal frameworks is expected to legitimize their use in institutional investment strategies and encourage strategic investment in the national industry.
• The current Diet session runs until June 23, 2024, but legislators can opt to carry over bills, which do not automatically expire as they might in the US Congress at the end of a two-year cycle.

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