The Japanese government has just announced a shake-up in the way startup companies can raise capital as reports indicate they plan to allow companies to raise funds through the issuance of crypto assets, such as currencies, instead of stocks.
According to a report from Nikkei Asia, startups looking to launch in Japan will now be permitted to raise money from venture capital firms by selling digital assets, providing more funding avenues for up-and-coming companies involved in blockchain technology.
“The change would widen the range of assets open to limited partnerships,” the report said.
Venture capital firms typically use limited partnerships to pool capital with other companies for startup investment, which caps their exposure to the money they put in. Up to this point, Japanese financial laws have restricted limited partnerships to more conventional assets, such as shares, stock options, and security tokens. The new rule adds other tokens and crypto assets to this list.