Japan plans to allow certain venture capital institutions to directly invest in cryptocurrency and Web3 startups
The Japanese Ministry of Economy, Trade and Industry announced that the Japanese Cabinet has approved a proposal to add cryptocurrencies to the list of assets that local investment limited partnership companies can obtain or hold. According to a revised bill released by the ministry last Friday, "the revision of the Industrial Competitiveness Enhancement Act will expand support for strategic investments in small and startup companies." According to local news media Coinpost's report on Saturday, this revision will allow venture capital firms to invest in projects that only issue cryptocurrencies. The ministry stated in a statement that after the Cabinet's approval, the bill has been submitted to the legislative body and will be deliberated. It is reported that Japanese limited partnership companies are usually used to invest in unlisted companies, which has become a common measure for venture capital firms to invest in startups. <br>
Japan’s Financial Services Agency relaxes regulations on employee rights of tokenized LLCs
According to Coinpost reports, the Japanese Financial Services Agency has announced a revision to the definition of the second article of the Financial Instruments and Exchange Act, which aims to give limited liability company-type DAO members the same rights as regular LLC members in terms of token ownership. This measure is expected to ease regulations on the rights of tokenized LLC employees and simplify DAO operations.
Japanese Congressmen Aim to Develop Web3 Policies, Including DAO Regulations
Japanese lawmakers Masaaki Taira and Hideto Kawasaki plan to develop policies for Web3 in Japan, according to an interview with CoinDesk Japan. The Liberal Democrat Party's Web3 project team released a whitepaper in April 2023 and hosted a DAO rulemaking hackathon to gather stakeholder input. One area of concern is the need for clarity around DAO regulations, which Taira believes will become clearer over time. The team also successfully pushed for tax reform for third-party ownership of crypto assets.
Osaka Digital Trading Platform Launches Digital Securities Platform
On December 31st, Osaka-based digital exchange platform (ODX) launched a digital securities platform called START, which is a proprietary securities token trading system (PTS). Just one month after obtaining PTS operating license from the Japanese Financial Services Agency (FSA), the platform officially launched. Prior to the launch, initial reports stated that the platform would initially introduce two types of digital securities.
Japan’s cabinet meeting approved the tax reform outline for fiscal year 2024, and corporate crypto assets will not be subject to market value tax
On December 24th, the Japanese government approved the tax reform outline for the 2024 fiscal year at the cabinet meeting on the 22nd. The amendment includes the following changes: companies holding third-party issued cryptocurrency assets will not be subject to valuation-based taxes. Currently, Japanese companies' third-party issued cryptocurrency assets are recorded as profit and loss at the end of the fiscal year based on the difference between market value and book value. After the amendment, only profits from the sale of cryptocurrency will be taxed, which means the same tax system for individual investors will change. The bill will be submitted to the Diet in January next year and will require approval from both the House of Representatives and the House of Councillors.
U.S., South Korea, Japan discuss North Korea’s cryptocurrency theft at trilateral meeting
The White House announced on Friday evening that US National Security Advisor Jake Sullivan, South Korean National Security Advisor Cho Tae-Yong, and Japanese National Security Advisor Takeo Akiba held a trilateral meeting in Seoul, South Korea to discuss North Korea's cryptocurrency theft, nuclear program, and ballistic missile program.
Japan’s Osaka Digital Exchange will conduct its first digital securities transaction on December 25
Osaka Digital Exchange (ODE) will conduct Japan's first digital securities transaction on December 25th. According to documents submitted to the authorities on Monday, Ichigo, headquartered in Tokyo, will sell approximately 3 billion yen (equivalent to 20.1 million US dollars) of real estate investment support securities.<br>Earlier on November 7th, it was announced that ODX is a proprietary trading system (PTS) created by SBI Holdings, and the company announced that CBOE has become its new major investor. Market makers Virtu and Optiver also participated in the investment. In June of last year, ODX began trading traditional securities and plans to launch digital securities this year. ODX's existing investors include Sumitomo Mitsui Financial Group (SMBC), Nomura Securities, and Daiwa Securities.
Japan’s first digital securities trading will launch on December 25
On November 20th, Osaka Digital Exchange will launch Japan's first digital securities transaction on December 25th. According to documents submitted to the authorities on Monday, Ichigo, headquartered in Tokyo, will sell approximately 3 billion yen (equivalent to 20.1 million US dollars) of real estate investment support securities.<br>Security tokens are a type of digitized securities that can provide investors with alternatives to traditional assets such as stocks, but so far, the lack of liquidity has limited such transactions.
Bank of Japan Governor: Decision on central bank digital currency will be made through public discussion
Decision on the central bank's digital currency will be made through public discussion, according to Bank of Japan Governor Haruhiko Kuroda.
Japan Is Moving Ahead With Cryptocurrency Tax Reform
Japan is pushing forward with cryptocurrency tax reform, and the country's top financial regulator will change the way it taxes domestic cryptocurrency companies. According to Japanese media CoinPost and the Financial Services Agency (FSA), the regulator has submitted a request for legislative changes to the government.
