Japan’s cabinet allows VCs to invest in crypto and Web3 startups


  • Japanese Cabinet’s approval expands VC investment into crypto and Web3, fostering innovation.
  • Local startups gain access to domestic funding, reducing reliance on foreign capital.
  • Japan’s “new capitalism” policy aims to cultivate the Web3 industry, driving economic growth

In a significant move aimed at fostering innovation and bolstering its digital economy, the Japanese cabinet has given the green light to a proposal permitting certain venture capital firms to directly invest in cryptocurrency and Web3 startups. 

This decision marks a pivotal shift in Japan‘s investment landscape, opening doors for local startups and medium-sized companies seeking funding in the burgeoning crypto and blockchain sectors.

Japan’s expansion of investment opportunities

The Ministry of Economy, Trade and Industry announced that the cabinet had approved amendments to the Act on Strengthening Industrial Competitiveness. These amendments include the addition of cryptocurrencies to the list of assets that local investment limited partnerships can acquire or hold. 

This strategic move is intended to broaden investment horizons and provide vital support to local ventures venturing into the dynamic realm of digital assets and decentralized technologies.

Facilitating local startup growth

The approved revision is poised to streamline the investment process for venture capital firms, enabling them to participate in projects that exclusively issue cryptocurrencies. Previously, Japanese VCs faced restrictions on investing in crypto assets, necessitating local crypto projects to seek funding from overseas venture capitals. 

Hiro Kunimitsu, founder and CEO of Gumi Inc., a prominent Japanese game development firm, emphasized the significance of this development, stating that it would present a substantial opportunity for Web3 startups originating from Japan.

Cultivating Japan’s Web3 Industry

Prime Minister Fumio Kishida’s “new capitalism” policy underscores Japan’s commitment to nurturing its Web3 industry. With the recent approval of the proposed amendments, Japan is poised to accelerate its efforts in fostering innovation and driving growth in the digital economy. This move aligns with the government’s broader agenda of embracing emerging technologies and positioning Japan as a global leader in blockchain and decentralized finance.

Following the cabinet’s approval, the bill has been submitted to the legislative body for deliberation. If ratified, the amendments would represent a significant milestone in Japan’s regulatory landscape, offering a conducive environment for investment in the crypto and Web3 space. The potential influx of capital from domestic venture capital firms could inject new vitality into the startup ecosystem, fueling innovation and driving economic expansion.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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