Japan Approves Bill Permitting Investment Firms to Hold Cryptocurrency

By: Isha Das

The Japanese government has approved a bill allowing Investment Limited Partnerships to acquire and hold cryptocurrencies. This is seen as a significant move showing Japan's shifting stance towards the acceptance of digital currencies within its regulatory framework.

The bill was approved on February 16th. It is part of a broader initiative to boost Japan's industrial competitiveness by including provisions like tax incentives, financial aid for strategic sectors, such as electric vehicles, green technologies, and semiconductors.

With the new legislation, investment limited partnerships, well-known in fields of private equity, venture capital, and real estate investments will be able to include digital assets in their portfolios. This adoption of cryptocurrencies into legal investment frameworks indicates Japan's intent to adapt its economic strategies to the digital age, aiming to become an active player in the global digital assets market.

The bill also introduces several initiatives to inspire innovation and strategic investments. The new initiatives include support for domestic production in strategic sectors, an innovation box tax system to encourage intellectual property usage, and the extension of Industrial Innovation Investment Corporation's operation till March 2050. The proposed legislation will be reviewed and potentially enacted before the Diet session ends on June 23, 2024.