If approved in parliament, the draft bill could see VCs fund Web3 startups in exchange for crypto assets.

Japan's cabinet approved a bill that adds crypto to the list of assets the nation's investment funds and venture capital firms can acquire, the Ministry of Economy, Trade and Industry said Friday.

Japan has been a global leader in framing a regulatory framework for stablecoins, and has indicated plans to promote Web3 while remaining tough on user protection. In September 2023, Nikkei reported that the country planned to relax rules for VC firms to invest in crypto startups.

Now the cabinet has approved the move, the amended bill will be introduced and debated in the current session of parliament, the Diet.

The revision could see VCs fund Web3 startups in exchange for crypto assets.

The amendment of the Industrial Competitiveness Enhancement Act was passed with the stated objective to "promote the creation of new businesses and investment in industry" and provide "intensive support to medium-sized companies and startups that are the driving force of Japan's economy," the ministry said.

Source: Amitoj Singh – coindesk.com