Japanese Startups Allowed to Issue and Sell Tokens to Attract Investments

According to reports from Nikkei, the Japanese government plans to permit the attraction of investments through the issuance and subsequent sale of tokens.

This will provide startups with a means to secure funding by issuing and selling digital currencies, similar to the popular ICOs of 2017-2019.

After finalizing all necessary legal procedures, the Japanese government may legalize this method of obtaining capital.

The Cabinet of Ministers is currently exploring options for a regulatory framework for blockchain startups that intend to issue and sell tokens to both retail and corporate investors.

The Financial Services Agency (FSC) is also involved in developing regulations for the issuance of digital currencies and easing fiscal controls.

By the end of 2023, the government plans to remove taxation on profits earned by cryptocurrency companies, in hopes of promoting the growth of the digital currency market in Japan.