Startups in Japan can now offer cryptocurrencies instead of stocks for investment.
The Japanese government has announced a new policy aimed at supporting start-ups and embracing cryptocurrencies. Under the new rules, startups will be allowed to offer cryptocurrencies instead of stocks when receiving investment from investment funds, making it easier for businesses to raise funds. This move is part of the country’s broader effort to boost the startup ecosystem.
The new policy will apply to investment limited partnerships (LPS) that invest in securities issued by startups. This will enable startups to diversify their funding sources and provide more options for investors.
Japan and other advanced economies are seeking to catch up with China, which is at the forefront of a global race to develop central bank digital currencies (CBDCs) and has ramped up its efforts in recent years. The Japanese government's decision to allow startups to raise funds with crypto can be seen as a step towards embracing digital assets and keeping pace with other countries in the region.