Japan’s crypto policy takes a positive step forward

A proposal to allow venture firms to own cryptoassets, first put forward last year, moves closer to law

article-image

Shutterstock / Sean Pavone, modified by Blockworks

share

The Japanese government is advancing an economic reform bill with notable implications for the crypto industry.

A measure included in the proposal would allow investment limited partnerships to acquire and hold cryptoassets. These entities are commonly used for private equity, real estate investments and venture capital investments.

This legislative proposal, published Friday by Japan’s Ministry of Economy, Trade and Industry, now heads to the Diet, Japan’s national legislature.

Broadly, the bill is designed to foster new business creation and strategic domestic investment through tax incentives, and other financial support aimed at specific strategic objectives.

The provision to allow investment firms to directly hold cryptoassets, proposed in September 2023, is seen as a softening of Japan’s relatively stricture regulatory stance when it comes to crypto.

Read more: Japan to let startups raise VC funding via digital assets: Nikkei

The inclusion of crypto assets in the legal framework not only legitimizes their use in institutional investment strategies but also positions Japan as a forward-thinking player in the global digital assets space, said Sota Watanabe, the founder of Astar Network a layer-1 blockchain popular in Japan.

“This is a crucial step for enriching and nurturing the national industry,” Watanabe told Blockworks. “Notably, this issue has long been a risk factor raised by VCs and startups.” 

Read more: Toyota Tests Developer Skills on Popular Japanese Blockchain

By integrating crypto assets into a broader strategy for industrial competitiveness and innovation, Japan’s signals commitment to adapting its regulatory and economic policies to the evolving digital economy.

“Politicians, equipped with accurate knowledge, are moving towards relaxing these regulations,” Watanabe said. “This shift, a result of concerted public-private efforts, represents a victory for all involved.”

The current Diet session runs until June 23, 2024, but legislators can opt to carry over bills, which do not automatically expire as they might in the US Congress at the end of a two-year cycle.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The platform also rolled out 13 tokenized funds for institutions on the Connect platform

article-image

The company’s expanded lineup introduces new ETF products, as more and more issuers get into crypto funds

article-image

President Donald Trump announced a 10% levy on almost all goods and additional tariffs on so-called “worst offending” countries

article-image

Solana may be in “recomposition” mode, as new protocols put usefulness ahead of mere virality

article-image

The stablecoin issuer will have to contend with bigger players and the interest rates environment

article-image

The president reportedly was still working on his tariff policy plans late Tuesday evening