Japan to let startups sell digital tokens to venture capital funds

Rules have restricted domestic investment in burgeoning Web3 field

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Japanese securities law restricts limited partnerships from participating in coin offerings by startups. © Reuters

ANNA NISHINO, Nikkei staff writer

TOKYO -- Japan plans to let startups raise money from venture capital firms by selling such digital assets as cryptocurrency instead of stock, 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. Venture capital firms typically use limited partnerships to pool capital with other companies for startup investment, capping their exposure to the money they put in.

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