Japan will enable startups to issue crypto instead of shares to seek capital
Nikkei.com, a Japanese news outlet, reports that this revised approach is applicable to Investment Business Limited Partnerships (LPS), a kind of investment company.
Local media in Japan have claimed that the government is considering allowing startups to issue crypto assets like currencies to the public in place of stocks.
This revised method, as reported by Nikkei.com applies to Investment Business Limited Partnerships (LPS) in particular. When compared to other countries, Japan is now significantly behind in its use of digital assets. This has begun to alter during the last several months.
On August 31, the Financial Services Agency (FSA), Japan’s major financial regulatory organization, took a significant step toward amending the tax legislation pertaining to cryptocurrencies. This remarkable action will help local firms avoid paying “unrealized gains” tax on cryptocurrency holdings at the end of the year.
In his opening keynote talk at the WebX conference in Tokyo, Japan, Prime Minister Fumio Kishida reaffirmed Japan’s commitment to supporting the Web3 sector. He emphasized its potential to revolutionize the web and spark societal change.
Recently, Binance announced to Cointelegraph that it will begin serving customers in Japan who utilize cryptocurrencies in the month of August. Binance was able to return to the Japanese market in November 2022 by purchasing the local exchange platform Sakura Exchange Bitcoin (SEBC), a crypto exchange service provider registered in Japan.