Nikkei Asian Review: Japan announces plans to relax fundraising for startups through token issuance, will ICOs make a comeback?

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Japan Relaxes Cryptocurrency Financing

According to a report by the Nikkei Asian Review, the Japanese government has announced adjustments to its regulatory framework to allow startups to raise funds by issuing digital assets to investors.

The report indicates that the government will relax its regulatory policy on financing for startups. When startup companies receive investments, they will be able to provide cryptocurrencies instead of traditional assets like stocks.

Japan has been conservative in its digital assets policies in the past, and this move aims to diversify the financing methods for Japanese startups.

The new financing mechanism, called the "Investment Limited Partnership Fund," will apply to startups issuing securities among other criteria.

Japan Continues to Promote Crypto Regulation

Compared to its past conservative stance on cryptocurrency policies, Japan appears to be further relaxing its crypto regulations, especially after the global attention brought by the FTX bankruptcy.

Japanese Prime Minister Fumio Kishida, during the global Web3 conference " WebX" on July 25, expressed the intention to continue advancing Web3. He believes that Japan has a leading advantage, consensus, and goals, emphasizing the incorporation of digital technology into the policy of "new capitalism," with Web3 being an essential part of it.

In addition, Japan passed a stablecoin law last year, allowing specific financial institutions to issue stablecoins within a regulatory framework. Jeremy Allaire, CEO of Circle, also revealed in July this year the consideration of issuing stablecoins in Japan.

Furthermore, the National Tax Agency of Japan announced this year that it will relax the taxation of cryptocurrencies, allowing businesses with "unrealized profits" to be conditionally exempt from taxes.

• Early legislation leads to maturity? An overview of the current situation in the Japanese cryptocurrency market, gradually easing since April this year

• Japanese National Tax Agency relaxes cryptocurrency taxes, businesses with "unrealized profits" conditionally exempt

• Circle CEO Jeremy Allaire considers issuing stablecoins in Japan, looking forward to cross-application payment scenarios

• Japan passes stablecoin law! Must be linked to legal tender, guarantee redemption, and can only be issued by specific financial institutions