SNEAK PEEK
- Animoca Brands is expanding into Japan as a result of its local company obtaining $45 million in the capital at a $500 million pre-assessment.
- The investment comes at a time when Japan is tightening rules on the cryptocurrency business. It was made equally by parent companies Animoca Brands and MUFG Bank.
- It now taxes profits from cryptocurrency assets, including unrealized gains, at a corporate rate of 30%, sparkling a blockchain brain drain and calling for reduced tax rates from local crypto businesses.
In order to grow its Web3 business, Animoca Brands Japan revealed today that it had obtained US$45 million from Animoca Brands Corporation Limited and Mitsubishi UFJ Bank (MUFG).
The strategic affiliate of Animoca Brands Corporation Limited focuses on developing collaborative connections in Japan for NFT-related business opportunities.
We are pleased to announce that @Animocabrandskk, our Japanese subsidiary, today announced a raise of US$45M from @mufgbk_official and Animoca Brands Corporation Limited valuing the company at approximately US$500M (pre-money).
— Animoca Brands (@animocabrands) August 26, 2022
Continue reading: https://t.co/K90CUhPDyK pic.twitter.com/AXIlxgbqA6
Animoca Brands Japan will raise the value and utility of their branded content while promoting the development of a secure NFT ecosystem in Japan by securing licensing for well-known intellectual property, developing internal capabilities, and encouraging the usage of Web3 across various partners.
Adoption Of Web3 in Japan
The new funds will be used by Animoca Brands Japan to obtain licensing for well-known intellectual properties, according to the parent firm, which has sponsored OpenSea, the biggest NFT platform in the world.
Additionally, to strengthen internal capabilities and encourage many partners to embrace Web3, boosting the worth and usefulness of their branded content while encouraging the growth of a safe and secure NFT ecosystem in Japan.
UFJ Bank and Bank of Tokyo-Mitsubishi merger
MUFG was founded as a result of the merging of UFJ Bank and Bank of Tokyo Mitsubishi. However, it is not the only Japanese financial institution that supports NFTs.
Banking behemoth Sumitomo Mitsui Banking Corp announced in July that it aims to build a “Token Business Lab” that will provide consulting to institutional clients interested in NFT applications, with technological support from blockchain startup HashPort.
The Market for NFT In Japan
In comparison to other nations, Japan has a lower uptake of cryptocurrency. Profits from cryptocurrencies are currently subject to a 30% tax.
Despite this, because of the country’s plethora of anime, manga, computer games, films, and musicians, Japan continues to be a preferred choice for NFT providers looking for IPs. As a result, NFTs have become more popular among domestic tech firms in Japan as well.
Line, messaging app, announced plans to open an NFT marketplace in Japan earlier this year. The Japanese messaging juggernaut has not only made millions from sticker sales but also popularised a few sticker collections.
