The Japanese government reportedly plans to allow startups to raise public funds through the issuance of crypto assets, such as currencies, instead of stocks, according to local media.
According to Japanese financial news site The Nikkei, this updated system will apply specifically to a category of funds known as Investment Business Limited Partnerships (LPS). Japan has been slower than the rest of the world in adopting digital assets, but this has been changing recently.
The Financial Services Agency (FSA), Japan’s primary financial regulatory authority, made a significant move on Aug. 31 to amend the tax code related to cryptocurrencies, showing a more active role in cryptocurrency regulation. The move is aimed at exempting local businesses from the year-end “unrealized gains” tax on cryptocurrencies.
Japanese Prime Minister Fumio Kishida emphasized the country’s commitment to fostering the Web3 industry during a keynote address at the WebX conference in Tokyo. He highlighted its potential to transform the internet and bring about social change.
Binance has confirmed that it will offer its services to Japanese crypto users starting in August. This follows their acquisition of the local exchange platform Sakura Exchange Bitcoin in November 2022, which allowed Binance to reenter the country.
Cointelegraph has reached out to the Japanese government for more details, but has not yet received comment at the time of publication.
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