Animoca Brands Japan Secures $45M in Financing to Boost Business on Web3

Animoca Brands Japan, the Japanese subsidiary of blockchain and venture capital firm Animoca Brands Corporation Limited, has raised significant funds to help increase its Metaverse and Web3 business reach.

Animoca Brands seeks to nurture the Japanese NFT ecosystem

The company 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 financing totaling $45 million. Animoca Brands Japan currently has a valuation of $500 million, as revealed in a previous press release.

The company specializes in Metaverse and Web3 infrastructure development. Looking to expand its reach, Animoca Brands Japan is considering working with MUFG Bank to increase its NFT-related offerings in the Japanese market.

The cryptocurrency tax system in Japan creates an unfavorable environment for investors

MUFG Bank provided $22.5 million in financing, while parent company Animoca Brands’ contribution represents the remaining $22.5 million. MUFG Bank noted that it plans to leverage the partnership with Animoca Brands Japan to develop a secure NFT environment. The company mentioned that it made this move while anticipating the arrival of Web3.

Founded in October 2021, Animoca Brands Japan aims to promote innovation in the Japanese Metaverse and Web3 industry. Since its inception, the company has invested in several Web3 and Metaverse projects. Some of his investments are in OpenSea, Axie Infinity and Dapper Labs.

The cryptocurrency industry in Japan has flourished as adoption remains high. The country has reached this level despite unfavorable legislation that has discouraged cryptocurrency ownership and trading. Individual cryptocurrency investors in Japan face taxes of up to 55% on investments in digital assets. Institutional investors, on the other hand, pay 30% tax on their cryptocurrency investments.

In response, Japan’s cryptocurrency advocacy groups JCBA and JVCEA called for an overhaul of the tax system. Furthermore, recent reports suggest that cryptocurrency investors in Japan may get a tax break on their investments in the future. The Japanese government recently made a proposal to reduce taxes on cryptocurrencies.