Japan's METI has approved a bill enabling Investment Limited Partnerships to hold crypto assets as part of a legislative effort to boost industrial competitiveness.

The policy is a component of Japan's initiative to drive economic growth by integrating digital technologies into its industries and financial systems.

Venture capital firms in Japan will now be permitted to invest in cryptocurrencies, which may lead to increased business development and expansion.

Japan is progressing towards the creation of a digital yen, with formal discussions set for spring 2024 and a potential national decision by 2026.

The Bank of Japan is currently piloting a central bank digital currency with simulated transactions in collaboration with the private sector.

These measures are reflective of Japan's pursuit of 'new capitalism' and could significantly influence the nation's venture capital landscape and crypto market presence.