• The Japanese government has approved a law that allows venture capital funds and investment funds the ability to hold cryptocurrency assets.
  • The bill, if passed by the parliament, could boost investments in Web3 startups.

The Ministry of Economy, Trade and Industry announced Friday that the Japanese cabinet has approved a bill adding crypto assets to the list of investments funds and venture capital companies can purchase.

Japan is a leader in the world when it comes to establishing a framework for stablecoins. It has also indicated plans that will promote Web3, while still being strict on user protection. Nikkei published in September 2023 that Japan planned to relax the rules for VC companies to invest into crypto startups.

The amended bill, now that the cabinet has approved it, will be debated and introduced in the current session, or Diet, of the parliament.

In exchange for crypto assets, VCs could fund Web3 startups.

The ministry stated that the amendment to the Industrial Competitiveness Enhancement Act passed was to “promote new business creation and investment in the industry” as well as to provide “intensive assistance to medium-sized businesses and startups, which are the driving force behind Japan’s economic growth.”

Read more: Japan embraces Web3 as global regulators grow wary of crypto

Sheldon Reback is the editor.