Japan’s government has taken a significant step by approving a bill that permits venture capital firms and investment funds to acquire and hold crypto assets. If this bill is passed by parliament, it could have far-reaching implications for the investment landscape, particularly in the realm of Web3 startups.
The Bill’s Impact
By adding crypto assets to the list of permissible assets for venture capital firms and investment funds, Japan aims to boost investment in innovative startups operating in the Web3 space. This moves position Japan at the forefront of blockchain technology and decentralized finance (DeFi).
Tekedia Mini-MBA (Feb 5 – May 4, 2024) has started; registration continues here.
Tekedia WhatsApp School‘s The Great Lectures begins Apr 1; register here. | Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Regulatory Framework for Stablecoins
Japan has been proactive in framing a regulatory framework for stablecoins, demonstrating its commitment to fostering a conducive environment for digital assets. While promoting Web3 technologies, Japan remains vigilant about user protection.
Relaxing Rules for VC Firms
In September 2023, Nikkei reported that Japan planned to relax rules for venture capital (VC) firms investing in crypto startups. Now, with the cabinet’s approval of this bill, VC firms could potentially fund Web3 startups in exchange for crypto assets.
Supporting New Businesses
The amendment to the Industrial Competitiveness Enhancement Act aims to “promote the creation of new businesses and investment in industry.” It also provides “intensive support to medium-sized companies and startups that are the driving force of Japan’s economy.”
Parliamentary Approval
The amended bill will be introduced and debated during the current session of parliament (the Diet). If approved, it will open up exciting opportunities for VC firms and investment funds while contributing to Japan’s position as a hub for crypto policy formation.
Japan’s government has approved a bill that allows venture capital firms and investment funds to hold crypto assets. If passed by parliament, this bill could significantly boost investment in Web3 startups. The move is part of Japan’s efforts to create a regulatory framework for stablecoins and promote Web3 technologies while maintaining a focus on user protection.
The amended bill will be introduced and debated in the current session of the Japanese parliament, known as the Diet. If approved, venture capital firms could fund Web3 startups in exchange for crypto assets. This development reflects Japan’s commitment to supporting new businesses and fostering investment in industries that drive its economy.
What does EIP 4844 mean for Ethereum rollups?
EIP-4844 is part of Ethereum’s rollup-centric roadmap, designed to address scalability challenges. While Ethereum has made significant improvements through upgrades like The Merge and rollups, transaction fees remain high for many users, and throughput isn’t where it needs to be for mass adoption. To tackle this issue, Ethereum has long-term plans for data sharding.
Data sharding involves partitioning databases into smaller segments to enhance efficiency and performance. When applied to blockchain, sharding becomes even more interesting. Ethereum aims to implement danksharding, which will significantly lower transaction costs and increase throughput.
Danksharding is expected to boost Ethereum’s transactions per second (TPS) to around 100,000, a substantial improvement compared to the current base layer TPS of approximately 15 and layer 2 rollups’ TPS of about 100 as of Q1 2023.
