Japan Embraces Tokenized Fundraising for Startups, Binance Returns: Latest Updates

2023-09-17 10:27:44

Japan allows startups to raise capital by issuing tokens instead of shares. Parallel to the authorization, Binance will also return to the country. According to the Japanese financial news site The Nikkei, this updated system for now specifically applies to the basic category of investment business limited liability companies (LPS), i.e. startups. Until now, Japan has lagged behind the rest of the world in adopting digital devices. However, this has changed in recent months. Positive changes have arrived with the crypto-friendly government Recently, several positive measures have been taken for the crypto community in the basically strictly regulated island country. In June, for example, the ban on stablecoins was lifted, which received an extremely positive reception from the industry despite the fact that only regulated institutions can receive the right. Thus, in the future, only banks, remittance service providers and other financial institutions will be able to use stablecoins. The Japanese license was accepted by the country’s primary financial regulator, the Financial Services Agency (FSA), on August 31. The authority sought to amend the tax code related to cryptocurrencies, thereby taking a more active role in its regulation. The goal of the regulation is also noteworthy, so that local businesses are exempted from year-end “unrealized profits” tax on cryptocurrencies. In his speech on the first day of the WebX conference in Tokyo, Japanese Prime Minister Fumio Kishida confirmed the country’s commitment to supporting the Web3.0 industry. He emphasized that Web3.0 has a stimulating effect on social transformation, which is in line with the ideas aimed at promoting the “new capitalism”. The prime minister’s stance is also surprising because Japan’s crypto-regulation has always sought a delicate balance. Despite the crypto-friendly steps, the regulatory framework has been tightened in several places. More serious expectations have been set, for example, regarding the sharing of customer information by crypto exchanges in order to curb money laundering activities. Meanwhile, Binance has also confirmed that it will offer its services to Japanese users once more from August. Binance was warned by Japanese authorities two years ago that it was operating without permits. The return was made possible by the local Sakura Exchange BitCoin crypto exchange, which was acquired last November.
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