According to a Nikkei report, the Japanese government plans to change regulatory frameworks to allow companies to seek funding by offering digital assets to investors.
Japan’s Govt. to Change Regulatory Frameworks
The change affects firms that receive capital from investment funds, which may obtain interests in digital assets rather than traditional stocks or securities.
The decision underscores Japan’s continued efforts to diversify capital-raising venues for domestic entrepreneurs, aligning it with the worldwide trend of adopting digital assets.
Government Supports Cryptocurrency
This development follows a string of crypto-friendly actions launched by the Japanese government.
It most notably Prime Minister Fumio Kishida’s administration.
Kishida emphasised his government’s commitment to supporting Web3 as a disruptive force.
That may inspire social transformation in his talk to the WebX Asia conference.
Well, fitting with his broader vision of nurturing a “new capitalism.”
Japan’s cryptocurrency exchanges, backed by the Japan Virtual and Crypto Assets Exchange Association (JVCEA).
Despite rigorous crypto rules, Japan has made advances towards becoming a crypto-friendly country.
Easing limitations on foreign-issued stablecoins, initiating a central bank digital currency pilot programme, and sponsoring metaverse and NFT-related research.
However, Japan’s stance to cryptocurrency regulation has always been tricky.
Despite the pro-crypto actions, the regulatory framework has been tightened in areas such as customer information sharing by cryptocurrency exchanges to combat money laundering.
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