Japan is set to allow venture capital and investment funds to directly hold digital assets, following Prime Minister Fumio Kishida's cabinet approval of a bill amending the industrial competitiveness enhancement act. This legislative change, aimed at bolstering Japan's economy and supporting web3 firm growth, will enable investment limited partnerships to include crypto assets in their portfolios. Despite Japan's historically strict digital asset regulations, this move signifies a shift towards liberalizing certain crypto rules, enhancing token listings, and taxation policies. The government plans to present the bill for discussion in the current Diet session, potentially expanding investment opportunities in digital assets and providing early exit strategies for web3 startup investors through cryptocurrency.