The Japanese government has recently announced a noteworthy relaxation of regulations about startup funding, allowing startups to accept digital assets as an alternative to traditional stocks. This regulatory shift aims to foster a more supportive and inclusive environment for startups by diversifying their financing options and aligning Japan with international standards in handling digital currencies.Under the newly established system, startups will now have the opportunity to receive investments in the form of crypto through a fund called the Investment Business Limited Liability Union (LPS). The Financial Services Agency (FSA) has also proposed to amend the tax code related to digital currencies, exempting domestic companies from the current “unrealized gains” tax on cryptocurrencies.The decision to embrace crypto as a legitimate form of investment for startups is expected to have significant implications for the digital currency market in Japan. It could increase accessibility by expanding the pool of potential investors, provide startups with enhanced liquidity, and stimulate the growth of the digital currency market.

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Information	Details
Geography	Asia
Countries	🇯🇵
Sentiment	positive
Relevance Score	10
People	None
Companies	Japanese media outlet, Ministry of Economy, and Industry, iStock, Trade, Financial Services Agency (FSA), Investment Business Limited Liability Union (LPS)
Currencies	None
Securities	None