Japan is considering relaxing fundraising rules for startups using cryptocurrencies while also strengthening anti-money laundering measures. Read more in this article.
A Positive Step Towards Supporting Entrepreneurship in Japan
Japan is considering relaxing restrictions on how startups can raise funds, aiming to revamp the sector in light of the significant growth in venture capital funding. According to a report by local media outlet Nikkei, the government is planning to allow startups to access financing from venture capitalists by offering cryptocurrencies. Consequently, the new regulations will enable investors to receive traditional stocks as well as cryptocurrencies when extending funding to these startups.
This move reflects Japan’s commitment to the development of the cryptocurrency sector and the enhancement of entrepreneurial opportunities. It is expected that this policy will receive substantial support from investors and small to medium-sized enterprises (SMEs).
Strengthening Regulation and Combating Money Laundering
With this positive development in Japan’s cryptocurrency market, we have also noticed that regulatory authorities are looking to enhance compliance with anti-money laundering laws. Recent steps have been taken to enforce the “Travel Rule,” which emphasizes the need to share customer transaction details among cryptocurrency exchanges. These rules aim to bolster the fight against potential money laundering.
For instance, the Japanese-based cryptocurrency exchange bitFlyer announced the implementation of the Travel Rule in May this year, demonstrating its commitment to complying with the highest security and safety standards.
Overall, Japan is taking decisive steps to bolster the emerging cryptocurrency sector with increased financial support and stringent regulation.