Japan, the first country in the world to publish a white paper focusing on Web3, could be on the verge of allowing limited liability companies (LLCs) to own cryptocurrencies.
Japan is considering a new bill that could allow venture capitalists to invest in and own cryptocurrencies.
From the official website of the Ministry of Economy of Japan, the government reported on the approval of a bill entitled Industrial Competitiveness Enhancement Act, which will promote new forms of investment among companies. This bill includes cryptocurrencies among the forms of investment that could be accessed by Japan's limited investment companies (LPS), which are mostly venture capital (VC) firms.
According to release of the Ministry of Economy, the addition of cryptocurrencies and digital assets among the investment assets that can be acquired by LPS is being considered.
The bill in question has so far been approved by the Japanese Cabinet. However, in order to become law, it still requires approval by the House of Councillors and the House of Representatives and the sanction of the Japanese Prime Minister.
New law will encourage investors in Japan to enter Web3
Japan is undoubtedly making great strides towards becoming a global benchmark for Web3.
In addition to being the first country to launch a Web3 white paper Japan has also launched other initiatives to accelerate innovation related to new technologies. These initiatives include the evaluation of its tax rules to exempt cryptocurrency companies from taxes, the authorization of several tokens to be listed on the country's markets, and the launch of a digital stock market.
Through all these initiatives, Japan wants to consolidate its leadership position in one of the fastest growing industries.
Now, with the aforementioned bill, Japan could take a new step towards establishing itself as the world leader in Web3. If this bill is approved by the Houses and the Prime Minister, investors could be motivated to invest in companies related to cryptocurrencies and new technologies.
Ledger Insights highlighted that the current limitations that LPS and VCs have to invest in cryptocurrencies and digital assets may have deterred several investors from participating in projects related to the crypto industry and Web3.
Continue reading: Japan reviews its tax policy to exempt crypto companies from taxes
