Japan's cabinet has passed a bill that expands the
investment landscape for venture capital firms and investment funds by
permitting them to acquire and hold crypto assets. If passed by parliament,
this legislation could catalyze investment in Web3 startups, strengthening Japan's blockchain technology and decentralized finance sectors.
According to the press release translated from
Japanese, the bill, dubbed the Industrial Competitiveness Enhancement Act, opens new avenues for venture capital. Having secured the approval of Japan’s cabinet, the
bill will be scrutinized by the parliament.
Japan's Crypto Regulation Strategy
The Industrial Competitiveness Enhancement Act aims
to stimulate economic growth by promoting the creation of new businesses and investment
in industries driving Japan's economy. By empowering medium-sized companies and
startups, Japan aims to strengthen innovation in the country.
Japan's approach to crypto regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Read this Term is evident in its efforts to establish a legal framework for stablecoins and digital assets. The country aims to promote innovation in the crypto space while prioritizing user protection.
The Ministry of Economy, Trade, and Industry mentioned: "Measures will be taken to add crypto assets to the list of
assets that can be acquired and held by investment limited partnerships."
"The purpose of the Independent Administrative
Institution Industrial Property Information and Training Center will be
revised to include advice and assistance regarding the protection and use of
industrial property rights for small and medium-sized enterprises and research
institutions."
Following the fallout from the Coincheck hack in
2018 and the collapse of FTX in 2022, Japan's regulations for digital assets have
significantly transformed, Finance Magnates reported.
Navigating Challenges
The adoption of stablecoin regulations in Japan is one of the steps towards regulatory clarity. By enacting dedicated laws, Japan has distinguished
itself as a global leader in the governance of stablecoins. In
contrast to the United States and the European Union, Japan offers clear
regulations for the industry.
However, Japan's stablecoin regulations pose challenges
for issuers, particularly in navigating profitability amidst low-interest rates. For instance, the mandate to maintain 100% of assets within
Japan's trust accounts presents hurdles for yen-based stablecoins.
Recently, Mitsubishi UFJ Financial Group, Japan's
leading banking conglomerate, discussed with stablecoin issuers to have them
leverage its blockchain platform.
Under Japan's stablecoin law, enacted on June 1,
licensed financial institutions and registered money transfer agencies are authorized to issue stablecoins. However, the law mandates that fiat currencies must fully back such tokens to ensure stability and protect investors.
Japan's cabinet has passed a bill that expands the
investment landscape for venture capital firms and investment funds by
permitting them to acquire and hold crypto assets. If passed by parliament,
this legislation could catalyze investment in Web3 startups, strengthening Japan's blockchain technology and decentralized finance sectors.
According to the press release translated from
Japanese, the bill, dubbed the Industrial Competitiveness Enhancement Act, opens new avenues for venture capital. Having secured the approval of Japan’s cabinet, the
bill will be scrutinized by the parliament.
Japan's Crypto Regulation Strategy
The Industrial Competitiveness Enhancement Act aims
to stimulate economic growth by promoting the creation of new businesses and investment
in industries driving Japan's economy. By empowering medium-sized companies and
startups, Japan aims to strengthen innovation in the country.
Japan's approach to crypto regulation
Regulation
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (
Read this Term is evident in its efforts to establish a legal framework for stablecoins and digital assets. The country aims to promote innovation in the crypto space while prioritizing user protection.
The Ministry of Economy, Trade, and Industry mentioned: "Measures will be taken to add crypto assets to the list of
assets that can be acquired and held by investment limited partnerships."
"The purpose of the Independent Administrative
Institution Industrial Property Information and Training Center will be
revised to include advice and assistance regarding the protection and use of
industrial property rights for small and medium-sized enterprises and research
institutions."
Following the fallout from the Coincheck hack in
2018 and the collapse of FTX in 2022, Japan's regulations for digital assets have
significantly transformed, Finance Magnates reported.
Navigating Challenges
The adoption of stablecoin regulations in Japan is one of the steps towards regulatory clarity. By enacting dedicated laws, Japan has distinguished
itself as a global leader in the governance of stablecoins. In
contrast to the United States and the European Union, Japan offers clear
regulations for the industry.
However, Japan's stablecoin regulations pose challenges
for issuers, particularly in navigating profitability amidst low-interest rates. For instance, the mandate to maintain 100% of assets within
Japan's trust accounts presents hurdles for yen-based stablecoins.
Recently, Mitsubishi UFJ Financial Group, Japan's
leading banking conglomerate, discussed with stablecoin issuers to have them
leverage its blockchain platform.
Under Japan's stablecoin law, enacted on June 1,
licensed financial institutions and registered money transfer agencies are authorized to issue stablecoins. However, the law mandates that fiat currencies must fully back such tokens to ensure stability and protect investors.
