Breaking: Japan Allows VCs to Invest In Crypto Tokens
The Japanese government has greenlit startups to utilize cryptocurrency tokens as an alternative to traditional stocks for public funding. This transition, designed to diversify the revenue avenues for budding businesses, is more than just an economic strategy since it signifies Japan’s evolving approach to digital assets and its commitment to fostering Web3 technologies.
Japan’s Progressive Crypto Approach
Moreover, Japan’s new regulations are part of a broader initiative to remain at the forefront of crypto adoption. Significantly, the country’s Limited Partnership Act for Investment governs this innovative form of equity financing. Under this act, limited liability partners are free to offer shares to unlimited liability partners, thus opening a new era of fundraising.
However, Japan’s proactive stance comes with a historical context. Once the home of Mt. Gox, the largest Bitcoin exchange globally, Japan has matured its crypto regulations.
Additionally, in early June, Japan introduced stablecoin legislation, allowing banks and trust companies to issue these tokens. Consequently, yen-backed stablecoins have seen a surge in popularity, accumulating $500 billion in transaction volume.
U.S. Controversy
On the international front, Japan’s approach starkly contrasts with that of the US. While Japanese startups revel in the newfound freedom to raise funds, the US Securities and Exchange Commission (SEC) maintains its stringent stance.
Ripple Labs, for instance, recently came under fire for its sales of XRP, which, according to a judge, violated US securities law. Besides, the SEC continues its crackdown on projects that sidestep token registration protocols.
While the world grapples with the fast-evolving crypto landscape, Japan is carving a niche, balancing innovation with regulation. As Japanese Prime Minister Fumio Kishida recently reiterated, the nation remains steadfast in its commitment to the transformative potential of Web3. Hence, with Japan’s continuous strides, it’s evident that the country is not just adapting to the digital era but leading the charge.
- Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B
- Experts Turn Bullish on Pudgy Penguins as PENGU Leads Meme Coin Buys on Solana
- ASTER to Launch Phase 2 Airdrop on October 10 as Open Interest Tops $5B in Two Weeks
- El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
