Japan to Allow Startups to Raise Funds by Issuing Crypto

The Japanese government reportedly plans to permit startups to raise public funds through the issuance of crypto assets, such as currencies, instead of stocks, local media has reported. 

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 in 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 Aug. 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.

(Source: CoinTelegraph)