Japan is set to introduce a new system that allows startups to raise public funds by issuing cryptocurrencies like digital currencies instead of traditional stocks, marking a significant shift in the country's approach to digital assets.
Japan will allow startups to raise funds through assets instead of Stocks
Japan is taking a significant step toward embracing digital assets as it plans to enable startups to raise public funds by issuing cryptocurrencies, such as digital currencies, instead of traditional stocks. This move represents a notable shift in Japan's approach to the use of crypto assets for fundraising.
This updated system is expected to be applicable to a specific category of funds known as Investment Business Limited Partnerships (LPS). Japan has been known for its cautious approach to cryptocurrencies, lagging behind some other countries in adopting digital assets. However, recent developments indicate a changing landscape.
The Financial Services Agency (FSA), Japan's primary financial regulatory authority, recently took a significant step by seeking to amend the tax code related to cryptocurrencies. The proposed changes aim to exempt local businesses from the year-end "unrealized gains" tax on cryptocurrencies, signaling a more active role in cryptocurrency regulation by the FSA.
Japanese Prime Minister Fumio Kishida has also reaffirmed the country's commitment to fostering the Web3 industry. In a keynote address at the WebX conference in Tokyo, he emphasized the transformative potential of Web3 technology for the internet and its ability to drive social change.
Binance, one of the world's largest cryptocurrency exchanges, has reentered the Japanese market, confirming its services for Japanese crypto users. This move followed Binance's acquisition of the local exchange platform Sakura Exchange Bitcoin in November 2022, allowing the exchange to resume operations in the country.
Japan's decision to allow startups to raise public funds through crypto assets represents a significant shift in its approach to digital currencies and could have far-reaching implications for the country's financial industry and the broader adoption of cryptocurrencies.
(AMAKA NWAOKOCHA, CoinTelegraph, 2023)