Japan startups ditch funding via stocks, to use crypto instead?

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Japan's forward-looking shift lets startups use cryptocurrencies instead of stocks for fundraising.

This update will primarily apply to a specific category of funds known as Investment Business Limited Partnerships .paving the way for startups to raise public funds using cryptocurrencies instead of traditional stocks. The country is making this significant shift in response to the evolving landscape of digital assets and investment opportunities.

This update will primarily apply to a specific category of funds known as Investment Business Limited Partnerships .“The government relaxes regulations on the financing of startups. When startups receive investment from investment funds, they will be able to give crypto assets instead of stocks.” For some time, Japan has been somewhat conservative in embracing cryptocurrencies and blockchain technology compared to other global players. However, recent developments suggested a growing openness to digital assets within the nation.On 31 August, Japan’s primary financial regulatory authority, the Financial Services Agency , took a significant step byamendments to the tax code related to cryptocurrencies.

The proposed amendments aim to exempt local businesses from the year-end “unrealized gains” tax on cryptocurrencies, thus providing more favorable conditions for crypto-related activities.industry during a keynote address at the WebX conference in Tokyo. He highlighted the transformative potential of Web3 technologies in reshaping the internet and driving social change, reaffirming the government’s dedication to supporting its growth.

 

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