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In a landmark development within the crypto industry, the Japanese government has announced a significant shift in regulations concerning startup funding. This change permits startups to accept crypto assets as an alternative to traditional stocks, ushering in a more inclusive and supportive environment for entrepreneurial ventures.
Japan, known for its strong foothold in technology and finance is struggling to keep pace with other advanced countries like China. China is now at the forefront of a global race to develop central bank digital currencies (CBDCs) and has ramped up its efforts in recent years. Accordingly, Japan has opted for this regulatory shift aimed to diversify the financing options available to startups while aligning Japan with international standards in handling digital currencies.
Under the newly established system, startups now have the opportunity to receive investments in the form of crypto through a fund known as the Investment Business Limited Partnerships (LPS). The LPS fund comprises multiple segments dedicated to investing in securities issued by startups, offering an alternative to traditional venture capital funding.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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