Tokyo, Japan, Monday, March 4, 2024 – In a move aimed at bolstering domestic investment and innovation, Japan’s Cabinet on February 16, 2024, approved a comprehensive bill titled “Bill to partially amend the Act on Strengthening Industrial Competitiveness, etc. to promote the creation of new businesses and investment in industry.” 1
The bill 1 is now slated for presentation during the ongoing session of Japan’s national legislature.
One key amendment within the bill involves the Law Regarding Investment Business Limited Liability Partnership Contracts.
This provision allows investment limited partnerships (LPs) to acquire and hold crypto assets. This change represents a significant shift for venture capitalists in Japan, opening doors for investment in the burgeoning Web3 space.
The overall package signifies Japan’s commitment to fostering domestic investment and innovation across various sectors. It will be interesting to see how the Diet reacts to the bill and whether it is ultimately enacted into law. The legislation has the potential to significantly impact Japan’s economic competitiveness and its position in the global technological landscape.
The proposed legislation encompasses a range of objectives aimed at fostering economic growth and innovation in Japan.
Foremost among these goals is the encouragement of strategic domestic investment, as the bill suggests substantial and lasting tax measures to stimulate investment and production in key sectors vital for the country’s economic future, including electric vehicles, green steel, and semiconductors.
Another pivotal aspect of the legislation is the focus on enhancing the competitiveness of Japan’s research and development base through the implementation of various measures, with a particular emphasis on financial support.
Additionally, the bill underscores the importance of promoting innovation by outlining specific provisions for the concentrated support of medium-sized companies and startups.
These entities are identified as critical drivers of domestic growth and innovation within Japan, and the legislation seeks to provide targeted assistance to further propel their contributions to the economy.
