The Japanese government is opening doors for start-ups to raise public funds using cryptocurrencies, departing from the conventional stock issuance approach. This significant shift in financial strategy comes at a time when Japan is making strides in embracing the digital asset revolution.
Investment Business Limited Partnerships (LPS): The Focus of Change
The transformation centers around Investment Business Limited Partnerships (LPS), a specific category of funds. Nikkei.com reports on this pioneering development. Historically, Japan had been somewhat cautious in adopting digital currencies, but recent months have seen a sea change in its stance.
Japan’s Digital Asset Evolution
Japan’s Financial Services Agency (FSA), the primary regulatory authority, made a monumental move on August 31. The FSA initiated amendments to the tax code relating to cryptocurrencies, signaling a proactive role in cryptocurrency regulation.
One noteworthy aspect of this move is the exemption of local businesses from the year-end “unrealized gains” tax on cryptocurrencies. This change is poised to have a profound impact on the cryptocurrency landscape within Japan.
Prime Minister Kishida’s Vision for Web3
Prime Minister Fumio Kishida reaffirmed Japan’s commitment to nurturing the Web3 industry during his keynote address at the WebX conference in Tokyo. He highlighted the industry’s potential to revolutionize the internet and drive social change. This reaffirmation underscores Japan’s dedication to staying at the forefront of technological advancements.
Binance’s Return to Japan
In another exciting development, Binance, a global cryptocurrency exchange giant, confirmed its return to the Japanese market in August. This move followed Binance’s acquisition of Sakura Exchange Bitcoin (SEBC), a local exchange platform, in November 2022.
The acquisition of this Japanese-registered crypto exchange service provider marked the path for Binance’s reentry into the Japanese market. This strategic move by Binance underscores Japan’s growing importance in the global cryptocurrency landscape.
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