Written by: Spinach Spinach
Unexpectedly, Spinach's interpretation of Singapore's new regulations has caused such a significant impact that it has even prompted MAS to come out and clarify. However, the influence remains extensive. Against this backdrop, an old yet urgent question resurfaces:
If fleeing Singapore, where else can one go?
If you are an institution or project team planning long-term compliant development, and are shut out by Singapore's extremely high compliance threshold, Japan might be one of your best choices
Why Japan? An unexpected haven
If you think Japan is just synonymous with anime, sushi, and overwork culture, you might need to reconsider this neighboring country. In the Web3 domain, Japan is becoming one of the most promising destinations in Asia in a low-key and pragmatic manner.
Unlike Singapore's "regulatory arbitrage" model, Japan is taking a different path: steady and compliant development. This might sound less exciting, but for practitioners who have experienced the collapse of FTX, Terra Luna's explosion, and Binance's global regulatory storm, this "boring" stability might be exactly what they need now.
Japan's Tax Policy
Currently, cryptocurrency gains in Japan are classified as "miscellaneous income" and are subject to a comprehensive tax rate as high as 55%.
But this is about to change—Japan is expected to pass a new Financial Instruments and Exchange Act next year, and after the legal amendment,the tax rate will drop to a fixed 20%. More interestingly, by holding cryptocurrencies through a company, the tax rate can be further reduced to 15-23%.
This tax optimization space, combined with Japan's relatively sound financial infrastructure, provides a viable survival environment for Web3 enterprises.
Regulatory Environment: Strict but Predictable
Japan's regulatory system is known for its strictness, but it possesses a precious quality: predictability.
The Japan Financial Services Agency (FSA) collaborates with the Japan Crypto Asset Exchange Association (JVCEA) to establish a relatively mature regulatory framework. Currently, 28 registered exchanges are in operation, and Circle's USDC has been approved as the first foreign stablecoin to circulate in Japan.
More importantly, the Japanese government's attitude towards Web3 is positive. The Ministry of Economy, Trade and Industry has approved amendments promoting investments in Web3 companies, and major corporations like Sony, Bandai Namco, NTT Docomo, KDDI, and Toyota are making substantial investments in the Web3 domain. This top-down support has created a relatively friendly ecosystem.
Of course, strict regulation also means higher compliance costs. As a Crypto Asset Exchange Service Provider (CESP), the registration process might take up to six months and involves rigorous cybersecurity and anti-money laundering requirements. But from another perspective, this strictness also means relative industry stability—at least you don't have to worry about waking up to completely changed regulatory rules.
Visa Options: From Digital Nomads to Permanent Residency
For Web3 practitioners at different levels, Japan offers diverse visa choices, a flexibility currently unavailable in Singapore.
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms like Circle, USDC, etc.]If you have decided to try Japan, what are the specific migration paths?
For individuals, the most direct way is to first apply for a digital nomad visa, using six months to conduct on-site investigations, understand the market environment, and establish initial network connections. During this period, you can simultaneously prepare application materials for a business management visa or a highly skilled talent visa.
For enterprises, establishing a Japanese branch company is a necessary first step. This process includes company registration, office leasing, bank account opening, and other aspects. If the business involves cryptocurrency trading, you also need to consider applying for the corresponding license from FSA.
It is worth noting that acquiring an existing Japanese cryptocurrency exchange license might be a faster option. Although the cost is higher, it can help avoid the lengthy application process and quickly enter the market.
