In Japan, where Prime Minister Kishida praised Web3 technology many times last year and said, “We want to regulate, not ban,” another positive step came regarding cryptocurrencies.

The Council of Ministers paved the way for venture capital firms, also known as VC, to invest in the tokens of startups that focus solely on cryptocurrency. According to local media Coinpost, relevant changes were made to the Industrial Competition Strengthening Law, preparing the way for VCs to invest in crypto startups. The parliament will be the final place for acceptance.

They will be able to buy tokens as well as shares

Current laws in Japan will allow them to buy both tokens and shares; under these laws, venture capital firms (VCs) are not allowed to invest in cryptocurrency companies which are not yet public. Companies that have gone public can only give shares to VCs.

Even if they haven’t gone public, these cryptocurrency companies will be allowed to offer investment firms their own tokens once the law takes effect.

According to experts, these changes will significantly increase the probability that Web3 companies in Japan receive investment.

A new law will be introduced in parliament and put to a vote after receiving permission from the Council of Ministers. By the end of this year, the legislation in draft form should be completed.