The Japanese government is reportedly planning to allow start-ups to raise public funds through crypto assets instead of stocks, according to local news site, Nikkei.com.
Nikkei.com says that the new rules regard a category of funds known as Investment Business Limited Partnerships (LPS).
When start-ups receive monetary support from investment funds, they have the choice to deliver crypto assets instead of regular stocks.
Japan and crypto
It is estimated that more than five million people in Japan – that’s 4% of the total population – are currently invested in cryptocurrency.
The country has recently shown a growing interest in the crypto and Web3 space. Many in the Japanese Web3 sector believe that the US’s regulatory crackdown could position Japan as a leading crypto hub.
Last month, Binance ventured into the Japanese market, unveiling a platform aligning with local regulatory standards. At time of launch, the exchange said: “By offering regulated exchange services in Japan, we’re hoping to bolster the development of the Japanese digital-asset market.
“The country’s drive for technological innovation and growing interest in blockchain technology make it a fantastic place to build a robust and sustainable Web3 ecosystem. Together with our Japanese users, it’s time to grow the Binancian community and welcome another wave of Web3 early adopters to the fold!”
Meanwhile, Circle the payment services company behind $USDC, has reportedly been evaluating whether to introduce a Japan-based stablecoin follows a legislative shift on 1 June where Japan’s Payment Services Act began recognising stablecoins backed by legal tender as a legitimate electronic payment method.
In July, Japan welcomed the Web3 industry, with prime minister Fumio Kishida referring to the sector as a “new form of capitalism”.
The Japanese PM highlighted the sector’s potential to drive innovation across industries as he expressed his support for Web3 start-ups saying: “I hope that the Web3 industry will regain its attention and vitality, and that various new projects will be born.”