Japan’s Ministry of Economy, Trade and Industry (METI) is paving the way for increased domestic investments in Web3 startups by permitting limited partnership (LP) firms to acquire and hold crypto assets. The recent approval of a bill, amending key acts including the Act on Investment Limited Partnership Agreements, signifies a significant shift in Japan’s approach to fostering new businesses and industries through strategic investments.

Japan Opens Doors for Limited Partnership Firms

Japan'S Ministry Of Economy, Trade And Industry (Meti)

The METI’s decision to allow LP firms to invest in and hold crypto assets marks a pivotal moment for Japan’s venture capital landscape. The amendment not only enables LPs to support medium-sized companies and startups engaged in cryptocurrency activities but also grants them a share in the ventures’ profits. This move is expected to catalyze the growth of the Web3 community in Japan, encouraging the emergence of homegrown crypto and blockchain startups.

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Holistic Legislative Amendments

In addition to amending the Act on Investment Limited Partnership Agreements, the METI’s bill also brings about changes in the Industrial Property Information and Training Center Act, the New Energy and Industrial Technology Development Organization Act, and the Industrial Competitiveness Enhancement Act. These comprehensive legislative adjustments underline Japan’s commitment to fostering innovation and stimulating domestic investment in emerging sectors.

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Prior to this legislative development, Japanese venture capital firms were restricted from investing in crypto assets, leading many Web3 startups to seek support from overseas investors. With the newfound approval for LPs to engage in the crypto space, Japan anticipates a surge in local investments in the Web3 sector. This move aligns with the country’s broader efforts to address legal issues surrounding a digital yen, emphasizing its commitment to technological advancements and financial innovation in the years to come.