Japan has taken a progressive step for the crypto industry by allowing startups in the country to issue crypto assets for raising public funds.
A reputed daily in Japan has reported a new crypto-related development in the country. According to the report, a new government policy initiative would enable startups to issue crypto while raising funds. While fundraising is usually done by issuing stocks in the company, the new initiative could propel crypto adoption.
Only Investment Business Limited Partnerships (LPS), a particular category of funds, could be a part of the new fundraising method.
“When startups receive investment from investment funds, they will be able to hand over crypto assets (virtual currency) instead of stocks, etc,” said a translated version of the report.
The crypto-friendly step is not new to Japan, though. From encouraging crypto regulation to being a crypto hub, Japan has taken a slew of steps in this regard. The National Tax Agency of the country has helped build a favorable tax structure for token issuers. Moreover, Japan has also collaborated with others like Singapore for a crypto pilot project.
Since the government has now allowed startups to issue crypto, the digital asset industry’s adoption could gain a big boost. Meanwhile, startups could also get access to more capital, with crypto investors lining up for more investments. It could be a win-win situation for both businesses and investors.
Japan’s new policy step for fundraising could also be a positive example for other crypto hubs like Hong Kong, Dubai, or Singapore.