Japan Will Add Cryptocurrency to Boost Startups
The Japanese government has announced its plans to add cryptocurrency as one of the funding methods to boost startups. The companies will be permitted to raise funds via crypto assets to oppose traditional stocks.
Startups that want to be launched in Japan can now sell digital assets and get funds from venture capital firms. Such measures are believed to let startups involved in blockchain technology choose from a wider selection of funding destinations. In simpler words, limited partnerships will have access to an array of assets.
Recently, limited partnerships were restricted to using more conventional assets when using their capital as an investment for startups. The new rule will not only add digital assets to the list but also expand this list with a variety of tokens.
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The main benefit here is that tokens come with more advantages if compared to traditional assets. First of all, they can be created and provided faster. What’s more, no intermediaries are needed (banks or brokerage firms). Last but not least, the change is expected to boost Web3 offerings.
Only in 2022, Web3 startups manage to raise more than $15 billion. However, the funding activity declined by the end of the previous year mainly due to the FTX collapse. Luckily, the situation seems to have improved a bit featuring the rise in Q1 2023.
In the end, we can see the Japanese government removing restrictions that used to block limited partnerships from using digital assets to invest in startups. Local venture capital firms will get a chance to take part and benefit from the Web3 technology growth. New rules will come into force in 2024. This means the tax code for the same fiscal year will be revised as well.
Earlier, 10 leading Japanese companies signed an agreement to create the “Japan Metaverse Economic Zone”. The main idea is to create a unique infrastructure for collaboration between different metaverse platforms, which is believed to push companies’ digital transformation.
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