Animoca Brands – a crypto gaming and web3 investment company– is making waves in Japan as its local entity raised $45 million at a pre-money valuation of $500 million.
The head company, Animoca Brands Corporation Ltd, together with Bank Ltd. (MUFG) oversaw the projects. They will use the capital generated to secure licenses for popular intellectual properties and also create internal capabilities.
The company also aims to promote web 3 adoption and increase the value and utility of its products while advancing the NFT space in Japan.
Animoca Brands Japan Partnership With MUFG
In March, the Japanese branch of Animoca Brands considered teaming up with the Bank of Tokyo-Mitsubishi UFJ (MUFG)– one of the oldest and biggest banks in Japan.
This partnership is for creating virtual content, NFT market management, and intellectual property rights acquisition.
According to MUFG, to restore the NFT market in Japan, it is important to create an ecosystem where individuals will be able to trade NFTs peacefully just like their daily transactions.
In addition to this, the further development of the NFT market will protect customers against fraud, loss of content, and impersonation due to transactions in the NFT space.
Japanese Involvement in the Crypto Space
This new initiative comes after the Japanese government decided to revisit the crypto task rules which will be applied by firms in the 2023 financial year.
Also, the two lobbying organizations for cryptocurrency in Japan which are the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association (JVCEA), have asked the government to reduce the tax rate for private investors earning crypto.
Recently, it inflicted a 30% corporate tax on the revenue generated from crypto assets with unseen gains inclusive.
Irrespective of the regulatory challenges, the NFT space continues to blossom. The local tech organization in Japan have started embracing the idea of NFTs and web 3.0.
For example, MUFG is among the first largest banks in Japan to venture into the NFT space.
Also, SBI has already developed a dedicated unit called SBINFT.