Japan allows startups to get funds using crypto

• Japan sees support for crypto startups in the new regulation for startup financing.
• reported that the new rules mean that startups can procure funds from investors through the offer of stocks and cryptocurrencies.

Japan would like to loosen the restrictions on the procurement of start-ups in order to redesign the sector in view of the growth of risk capital financing.

According to a report by the local news agency Nikkei, the government plans to provide start-ups through the offer of cryptocurrencies access to financial resources from VCS. Therefore, the new regulation will enable investors to receive both traditional stocks and cryptocurrencies when financing start-ups.

blockchain reporter colin wu shared the messages about X.

According to Nikkei, the Japanese government will loosen the regulations for startup financing. If start-ups receive financial support from investment funds, you can choose to deliver crypto-assets instead of just shares. The new rules apply to funds that invest in limited ...

- Wu Blockchain (@wublockchain) 15. September 2023

The regulatory approach of the country will apply to funds that invest in limited partnerships (limited partnerships, LPS), the report says. Japan's growing support for cryptocurrencies comes from trying to increase the investment room in order to meet an emerging cryptocurrency sector.

But the regulatory authorities have also tightened their reservations in compliance with regulations in recent months, including the enforcement of the travel sails, which prescribes the exchange of customer transaction details between crypto exchanges. The aim of the regulations is to strengthen potential money laundering.

The Japan-based crypto exchange Bitflyer announced the implementation of the travel sail in May this year.