The Japanese government reportedly plans to permit start-ups to raise public funds through the issuance of crypto, assets, such as currencies, instead of stocks, local media has reported.
According to Japanese financial news site Nikkei.com, this updated system is specifically applicable to a category of funds known as Investment Business Limited Partnerships (LPS). So far, Japan has lagged behind the rest of the world on embracing digital assets. However, this has been changing in recent months.
Japan’s primary financial regulatory authority, the Financial Services Agency (FSA), made a significant move on August 31, seeking to amend the tax code related to cryptocurrencies, thereby taking a more active role in cryptocurrency regulation. The noteworthy move is aimed at exempting local businesses from the year-end “unrealized gains” tax on cryptocurrencies.
Japanese Prime Minister Fumio Kishida reaffirmed the country’s commitment to fostering the Web3 industry, in a keynote address on day one of the WebX conference in Tokyo, Japan. He highlighted its potential to transform the internet and kindle social change.
Binance recently confirmed to Cointelegraph that it would offer its services to Japanese cryptocurrency users from August onwards. This happened after the company acquired the local exchange platform Sakura Exchange Bitcoin (SEBC) in November 2022, which acquisition of the Japanese-registered crypto exchange service provider paved the way for Binance’s reentry into the country.
Related: Marketing company wants 90% of Japanese population on Web3: KBW 2023
Cointelegraph has reached out to the Japanese government for more details and is yet to receive feedback at the time of publication.
Magazine: How to protect your crypto in a volatile market. Bitcoin OGs and experts weigh in