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The Japanese Government Plans to Permit Start-Ups to Raise Funds Through Crypto Assets

The Japanese government is reportedly considering a new system that would allow start-ups to raise public funds using cryptocurrency assets instead of traditional stocks. This move aims to foster innovation in the start-up ecosystem and align Japan’s financial regulations with the global trend of embracing digital assets.

The updated system is specifically targeted at Investment Business Limited Partnerships (LPS), a category of funds. By permitting the issuance of crypto assets such as currencies, start-ups can potentially access a wider pool of investors and enhance their fundraising opportunities.

This development comes after the Financial Services Agency (FSA), Japan’s primary financial regulatory authority, proposed an amendment to the tax code concerning cryptocurrencies. This move aims to exempt local businesses from the year-end “unrealized gains” tax on cryptocurrencies, demonstrating the government’s proactive stance in cryptocurrency regulation.

The AI legalese decoder can play a significant role in this situation by simplifying and demystifying legal jargon associated with crypto assets and investment regulations. Start-ups can utilize this tool to understand the legal implications and requirements when issuing crypto assets, helping them navigate the complex legal landscape more effectively.

Japanese Prime Minister Fumio Kishida has also voiced his commitment to fostering the Web3 industry during a keynote address at the WebX conference in Tokyo. He acknowledged the transformative potential of Web3 technologies and their ability to drive social change. This further underscores the government’s intent to support innovative initiatives in the crypto and blockchain space.

In line with these developments, leading cryptocurrency exchange Binance has announced its intention to offer services to Japanese cryptocurrency users. The acquisition of the local exchange platform Sakura Exchange Bitcoin (SEBC) in November 2022 has facilitated Binance’s reentry into the Japanese market, providing users with more options for trading and investment.

While further details regarding this new system are yet to be disclosed, it is an encouraging step towards creating a conducive environment for start-ups and investors in Japan’s crypto industry. Cointelegraph has reached out to the Japanese government for more information and will continue to provide updates on this matter.

Related: Marketing company wants 90% of Japanese population on Web3: KBW 2023

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