- This comes at a time when Japan is enforcing more rules on the cryptocurrency sector.
- The current corporation tax rate is set at 30% on all cryptocurrency profits.
Animoca Brands, a juggernaut in the crypto gaming and web3 investing space based in Asia, is expanding into Japan with the help of a $45 million fundraising round at a pre-money value of $500 million.
Animoca Brands, the parent company, and MUFG Bank, the biggest bank in Japan with 360 years of history, split the investment. This comes at a time when Japan is enforcing more rules on the cryptocurrency sector.
Huge Potential Despite Crackdown
It’s not easy to use cryptocurrencies in Japan. The current corporation tax rate of 30% on all cryptocurrency profits (realized and unrealized) has resulted in a mass migration in the blockchain industry and calls for reduced tax rates from local crypto businesses. Japan is still a hotspot for NFT providers looking for IPs because of its own abundance of popular anime, manga, video games, films, and artists.
To increase the value and usefulness of their branded material and encourage the growth of a safe and secure NFT ecosystem in Japan, Animoca Brands Japan, whose parent firm has funded the world’s biggest NFT platform OpenSea, wants to utilize the new funding to obtain licenses for popular intellectual properties, improve internal capabilities and push adoption of Web3 to various partners.
Japanese financial institutions are not limited to MUFG, which was founded by the merging of the Bank of Tokyo-Mitsubishi and UFJ Bank. Sumitomo Mitsui Banking Corp, a major financial institution, said in July that it will launch a “Token Business Lab” to advise institutional clients on the use of NFT applications, with technical assistance from blockchain startup HashPort.
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