Japan is considering new regulations to support crypto startups in terms of startup financing. According to a report from local outlet Nikkei, the government plans to provide startups with the possibility to access funds from venture capitalists (VCs) by offering crypto. The new rules will allow investors to receive traditional stocks as well as digital assets when investing in startups.
This news was shared by blockchain reporter Colin Wu on his Twitter account. He pointed out that the regulations apply to funds investing in limited partnerships (LPs). Japan is not the only country that is looking to facilitate the crypto sector with the aim of boosting investment.
Apart from supporting the industry, regulators have also stepped up their efforts to enforce the Travel Rule. This rule requires crypto exchanges to share customer transaction details in order to prevent money laundering. Japanese-based crypto exchange bitFlyer announced the implementation of the travel rule back in May this year.