Animoca Brands Japan, the Japan-based subsidiary of blockchain and venture capital firm Animoca Brands Corporation Limited, has raised significant funding to help boost its Metaverse and Web3 business reach.
Animoca Brands seeks to nurture the Japanese NFT ecosystem
The firm revealed the development on its official website on Friday. According to the announcement, Japan’s largest bank, MUFG Bank and parent company Animoca Brands collectively supported the funding which amounted to $45M. Animoca Brands Japan currently has a valuation of $500M as it revealed in a previous press release.
The company specializes in the development of Metaverse and Web3 infrastructure. Looking to expand its reach, Animoca Brands Japan is taking into account the possibility of working in tandem with MUFG Bank to grow its NFT-related offerings within the Japanese market.
Animoca Brands Japan will use the new capital to continue to secure licenses for popular intellectual properties, develop internal capabilities, and promote adoption of Web3 to multiple partners,
the firm noted.
It also mentioned that one of its goals is to nurture the Japanese NFT ecosystem.
The crypto tax system in Japan creates an inauspicious environment for investors
MUFG Bank contributed $22.5M to the funding while parent company Animoca Brands’ contribution represents the remaining $22.5M. MUFG Bank noted that it plans to leverage the partnership with Animoca Brands Japan to develop a secure NFT environment. The firm mentioned that it made this move while anticipating the arrival of Web3.
Established in October of 2021, Animoca Brands Japan aims to foster innovation in the Japanese Metaverse and Web3 industry. Following its inception, the firm has invested in several Web3 and Metaverse projects. Some of its investments are in OpenSea, Axie Infinity and Dapper Labs.
The cryptocurrency industry in Japan has flourished, as adoption remains at peak level. The country has attained this level despite inauspicious legislations that have discouraged crypto ownership and trading. Individual crypto investors in Japan face taxes of up to 55% on digital asset investments. Institutional investors, on the other hand, pay 30% taxes on their crypto investments.
In response, Japan’s crypto advocacy groups, JCBA and JVCEA called for the review of the taxing system. Furthermore, recent reports suggest that crypto investors in Japan might get a tax reduction on their investments in the future. The Japanese government recently made a proposal of crypto tax reduction..