Japan’s government is planning to relax regulations on startup financing to support the growth of the sector. According to a report from local outlet Nikkei, this new regulation will allow startups to raise funds from venture capital firms by offering not only traditional stocks but also cryptocurrencies. The move comes as Japan aims to revamp its startup scene amid increasing venture capital funding.
Blockchain reporter Colin Wu shared the news on Twitter, stating that startups receiving financial support from investment funds can opt to deliver crypto assets instead of just stocks. The new rules will specifically apply to funds investing in limited partnerships (LPs). This regulatory approach reflects Japan’s growing support for cryptocurrencies as several countries strive to accommodate the burgeoning crypto sector.
However, it’s important to note that regulators have also recently intensified their efforts to enforce compliance in the crypto space. This includes the implementation of the Travel Rule, which mandates the sharing of customer transaction details between crypto exchanges to combat potential money laundering. Japanese-based crypto exchange bitFlyer has already announced the implementation of the Travel Rule earlier this year.
By allowing startups to raise funds using cryptocurrencies, Japan is embracing the potential of digital assets and blockchain technology to revolutionize the startup ecosystem. This move not only provides startups with alternative financing options but also showcases the country’s commitment to staying ahead in the global race for innovation.
Overall, Japan’s decision to relax regulations on startup financing and embrace cryptocurrencies demonstrates its determination to support and nurture its startup sector. By incorporating cryptocurrencies into the fundraising process, Japan is recognizing the transformative power of digital assets and creating an environment that fosters innovation and growth.