The Japanese government is set to adjust regulatory frameworks, allowing startups to raise funds by issuing digital assets to investors. This decision is part of Japan’s ongoing efforts to diversify capital-raising platforms for its domestic startups, aligning itself with the global trend of embracing digital assets. Prime Minister Fumio Kishida has emphasized his government’s commitment to promoting Web3 as a disruptive force that can stimulate social transformation, aligning with his broader vision of fostering a “new capitalism.”

Cryptocurrency exchanges in Japan, led by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), have also been pushing for relaxed regulations in the country. Despite maintaining strict crypto regulations, Japan has also made strides to establish itself as a crypto-friendly country, lifting bans on foreign-issued stablecoins, launching a central bank digital currency pilot program, and funding metaverse and NFT-related projects. However, Japan’s approach to crypto regulation has also been tightened in areas such as customer information sharing by crypto exchanges to curb money laundering activities.

The latest shift in policy offering startups the option to issue crypto assets for funding could be an inflection point in Japan’s march toward becoming a crypto-friendly nation. It not only signifies a leap in the country’s crypto regulatory landscape but also highlights a tangible way in which digital assets can reshape traditional financial mechanisms.

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Information	Details
Geography	Asia
Countries	🇯🇵
Sentiment	positive
Relevance Score	10
People	Fumio Kishida, WebX Asia, JVCEA
Companies	WebX Asia, Central Bank Digital Currency Pilot Program, Japan Virtual and Crypto Assets Exchange Association (JVCEA), Japan, NFT-related projects
Currencies	None
Securities	None