Currently, Japanese venture capital firms and limited liability companies (LLPs) cannot invest directly in cryptocurrency due to regulatory restrictions. Their investments are limited to conventional investments. According to Nikkei According to the newspaper, there are plans to update the LLP law, which could mean more Japanese startups issuing digital assets to raise funds.
At the end of August, we informed you that MUFG was considering creating crypto trusts to hold tokens. One of the main targets is institutional investors operating through limited liability companies, precisely because LLPs cannot hold tokens directly.
Globally, most Web3 companies raise capital via tokens. Thus, the restriction prevented Japanese venture capital firms and institutional investors from participating in the blockchain boom (and bust). This could partly explain why people like SBI and Sygnum, based in Switzerland create a joint venture fund in Singapore to invest in web3. Nomura formed its digital assets subsidiary, Digital Laserin Swiss.
It is also mandatory for LLPs to invest at least half of their assets in the country. Now this restriction could also be removed.
Meanwhile, MUFG is collaborating with various Web3 startups and has launched a study group on the subject. Members and partners include wallet provider Ginco and sports fan token company Financie, which also offers an initial exchange offering (IEO) support business for token issuers.