Japan Authorizes Companies to Hold Bitcoin!

The Japanese government has just approved a bill authorizing investment limited partnerships to hold bitcoin and other cryptos. It’s a well-considered decision, part of a wide-ranging reform aimed at boosting the competitiveness of the Japanese economy.

Japan takes the plunge into crypto adoption

Until now, Japan adopted a rather cautious stance towards cryptos, fearing risks for investors. However, this is gradually changing.

Last week, the Japanese cabinet gave the green light to a legislative proposal aimed at partially amending the law on strengthening industrial competitiveness. The aim is to promote the creation of new businesses and investment in industry. The bill includes fiscal and financial measures targeting strategic sectors, including technology and green energy.

The main novelty lies in the authorization given to investment limited partnerships to acquire and hold cryptos. Since these companies play a major role in private equity and venture capital in Japan, the integration of cryptos into their investment strategies marks a real turning point.

In fact, the bill was introduced last month as part of a wider economic stimulus package aimed specifically at boosting key sectors. For example, the reform will be debated by the Diet, Japan’s national parliament, at its next ordinary session, starting in March. Thus, if adopted, it will enshrine the gradual integration of cryptos into Japan’s legal arsenal.

Incentives to encourage innovation

The authorization given to investment companies is just one measure among many in the bill. It also introduces a whole series of incentives to encourage innovation and strategic investment in Japan. In particular, it provides tax benefits for companies exploiting patents and other intellectual property rights.

This new law confirms Japan’s determination to remain at the forefront of digital innovation. It’s no coincidence that the country has decided to work alongside Singapore and two other countries to set up pilot projects in this sector. For several years now, Japan has been seeking to position itself as a leader in this field.

Indeed, the country is already among the strongholds of the global crypto ecosystem. In its latest report, Chainalysis ranks it as the third country with the most crypto transactions, behind the USA and Russia. This dominant position demonstrates Japan’s lead in crypto adoption.