The Japanese Cabinet has approved a new proposal to allow VC companies to directly invest in cryptocurrency and Web3 companies.

According to BlockBeats news on February 19th, the Japanese Ministry of Economy, Trade and Industry announced on February 16th that the Japanese Cabinet has approved a proposal to add cryptocurrencies to the list of assets that local investment limited partnership enterprises can purchase or hold. If the revision of this law is achieved, Japanese venture capital (VC) will be able to invest in projects that only issue virtual currencies, and the threshold for Japanese Web3 companies to raise funds and conduct business will be lowered. Previously, Japanese venture capital companies were unable to invest directly in cryptocurrency assets. The Japanese government is expected to submit a draft amendment to the LPS law to the National Diet as early as 2024.