Singapore’s low taxes draw Japan’s Web 3.0 companies
A large number of Japanese Web 3.0 companies are moving to or at least setting up new offices in Singapore, executives from Japanese blockchain gaming infrastructure builder Oasys told Forkast on Friday.
See related article: Japan’s government approves policy to drive Web 3.0 adoption
- Japanese firms operating in the Web3 sector need to pay taxes on unrealized gains if they issue a token and that goes up in value, Ryo Matsubara, representative director of Oasys, told Forkast at the IVS Crypto 2022 event in Okinawa. “We [may] go bankrupt because we need to pay the tax,” he said.
- In an interview, Matsubara and Oasys director Daiki Moriyama said a difficult regulatory environment in Japan has led the firm to take a hybrid operational approach by looking to operate out of Singapore.
- The number of Japanese startups moving to Singapore will likely reach 100 within 2022, according to Matsubara, as the city-state offers advantages in terms of close physical proximity and time zone.
- Japan levies up to a 55% tax on gains made in crypto by investors, while token issuers reportedly are levied at a tax rate of around 35%.
- Oasys on Thursday said their sale of private tokens raised about US$20 million led by blockchain investment platform Republic Capital and Crypto.com, Huobi and KuCoin.
- Japan’s traditional video game and IP giants Sega and Bandai Namco are among the primary investors of Oasys, which was founded this year.
See related article: Singapore may limit retail participation in crypto
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