Following a deal between Square Enix and Animoca Brands Japan earlier in 2024, the two are further strengthening their ties as Animoca Brands’ Mocaverse project has entered into a Memorandum of Understanding with Square Enix’s Symbiogenesis. 

More particularly, Symbiogenesis will tap into Mocaverse’s Moca Network, giving over 1.8 million Moca holders access to Symbiogenesis content.

Previously having a strong game focus, the project is now mainly labelled an art collection with additional “browser-based experiences”. Created by Japanese game publisher Square Enix, the collection contains 10,000 NFTs, which are integrated with its “browser-oriented content”.

Notably, ahead of the release of its second chapter in June 2024, Symbiogenesis minted out 1,500 NFT characters during a three-day auction on Arbitrum One.

As for Mocaverse, it will enable existing Symbiogenesis players to access its partner games and experiences, including Animoca’s more than 540 portfolio companies, in a quest to accelerate web3 onboarding.

Mocaverse project lead, Kenneth Shek, commented, “Mocaverse’s partnership with Symbiogenesis represents an exciting opportunity to simplify the path to web3 for a crypto-curious audience.”

Producer of Symbiogenesis at Square Enix, Naoyuki Tamate, said “We are thrilled to start our collaborative partnership with Mocaverse. Together, we will leverage our respective strengths to onboard users to the next iteration of the Internet.“

To support the global expansion of Japanese IP and blockchain, Animoca Brands Japan has partnered with Japanese game discovery platform and marketplace Tokyo Stupid Games. 

As for Tokyo Stupid Games, it’s working on a platform where physical assets can be tokenized on the blockchain – in this case Solana – linking real-world assets with NFTs. Spearheading Japanese brands and IPs, it aims to promote the use of web3 to help companies find new market fit and provide new user experiences within gaming, art, and more.

In its quest to support Japanese brands integrate with web3 and reach global recognition, Animoca Brands Japan will use its network – including parent company Animoca Brands’ over 540 portfolio companies – to assist Tokyo Stupid Games in terms of marketing and tokenomics. 

“We are excited to be working with Animoca Brands, a leading global player, to take on the challenges of the future with the vision of building a new economic sphere by bridging web3 and Japanese culture,” said Tokyo Stupid Games founder and CEO Rock No.6.

“Tokyo Stupid Games is working to promote Japanese brands and IPs both domestically and internationally through real-world assets in web3 games, an approach that is highly compatible with Animoca Brands Japan’s mission,” said Animoca Brands Japan COO Kensuke Amo.

“Through the activities of both companies, we will continue to promote Japanese culture to the wider world.”

Japan’s DMM Group, along with its subsidiary DMM Crypto, is partnering with blockchain developer Progmat to explore the launch of a stablecoin under existing local regulations, according to an Aug. 23 statement.

Initially, the stablecoin will be integrated into DMM’s digital economy project, Seamoon Protocol. It will be designed to enhance stability and ultimately boost the value of the network’s planned native SMP token.

According to the statement:

“The stablecoin is intended to serve as a reserve currency underpinning the project’s treasury pool and a price stabilization mechanism for SMP–a soon-to-be-launched cryptocurrency intended to be the primary means of payment within Seamoon Protocol and DMM’s larger portfolio of companies.”

DMM Crypto CEO Nagato Kasaki said the planned stablecoin will help the firm to create an avenue for the global community to experience DMM’s cultural universe and co-create new experiences together through the Seamoon Protocol.

Three phase launch

According to the firm, the stablecoin’s mainnet launch will occur in three phases. The first phase of the launch will focus on stabilizing the Seamoon Protocol and its SMP token price by establishing a treasury pool using proprietary stablecoins.

Subsequently, the stablecoin will be introduced within the DMM ecosystem, serving as a payment method for transactions between DMM companies and business partners. This could include loan repayments and other uses, expanding the token’s utility beyond the Seamoon Protocol.

In the final phase, the stablecoin will be made available to registered partners and verified users. Over time, it is expected to become an alternative to credit card payments for these verified users.

Stablecoin growing market

DMM’s initiative comes amid the rapid growth of the stablecoin ecosystem, which has attracted new entrants.

According to CryptoSlate data, stablecoin’s total market capitalization has surged from just over $100 billion to a new all-time high of around $170 billion within the past seven months amid improved market conditions.

During this period, the market has witnessed the entrance of major crypto firms like Ripple, which have thrown their hats into the sector, while established players such as Tether’s USDT and Circle’s USDC have scored continued adoption and growth.

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BitFlyer, one of Japan’s largest crypto exchanges, agreed to acquire the Japanese subsidiary of FTX, the defunct crypto exchange founded by the convicted Sam Bankman-Fried.

FTX Japan was among the several companies impacted by FTX’s collapse in November 2022. Despite the turmoil, FTX Japan maintained that its customers’ assets were separate from FTX’s bankruptcy estate and has repaid its customers as of February 2023.

Crypto custodial move

According to a June 20 statement, bitFlyer aims to reboot FTX Japan as a digital asset custodial firm targeted at institutional investors. It stated:

“[The Company] will provide services related to crypto asset spot ETFs, centered around its core business, if the legal system is established in the future in Japan. [The Company] will continuously maintain the crypto asset exchange service provider and Type 1 financial instruments business license depending on the situation.”

BitFlyer noted that the approval of spot Bitcoin ETFs in the US has increased institutional investors’ entry into the crypto asset market, which needs professional custodial services. It stated:

“Although the [ETF] situation is not necessarily the same in the U.S. and Japan, this trend is expected to increase the need for institutional investors to enter the crypto asset market in Japan, and crypto asset custody services are expected to become more important.”

Following the introduction of spot Bitcoin ETFs in the US, there is speculation that several Asian regulators might follow suit. Hong Kong has already launched crypto ETFs, but Japan is cautious about overcoming the regulatory hurdles for these products.

Nevertheless, BitFlyer said the company would offer services tailored to the needs of financial institutions, including trust banks if Japan establishes a legal framework that supports crypto asset spot ETFs.

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New NFT launchpad Sorah from Animoca Brands Japan is set to go live June 18th 2024, with three inaugural NFT collections up for sale kicking off the launch.

One of the collections is San FranTokyo’s PFP NFT collection San FranTokyo Visions. Themed around anime and Japanese pop culture, San FranTokyo is a fictional city, both serving as its own IP, as well as new digital experiences including NFTs, anime figures and merchandise. A total of 50 San FranTokyo NFTs will be up for sale, to a cost of 0.085 ETH ($300).

The other two collections feature The Sandbox avatars Captain Tsubasa Team Collection and Shibuya109 Fashion Collection.

In terms of the Captain Tsubasa collection, each avatar has a unique football-specific animation. A total of 100 Captain Tsubasa Team Collection NFTs will be available to a cost of 60 MATIC ($39).

Released by The Sandbox, the Shibuya109 Fashion avatars features original animations based on current Japanese culture. Avatar holders can use their avatars in various fashion-themed mini-games in The Sandbox. In terms of the Captain Tsubasa collection, each avatar has a unique football-specific animation. At the Sorah launch, a total of 100 Shibuya109 Fashion NFTs will be available to a cost of 60 MATIC ($39).

More generally, Sorah aims to become a gateway connecting Japan with the global web3 community. It hopes to expand sales opportunities for selected NFT projects, in addition to offering its users various benefits.

Projects looking to launch their NFT collections on Sorah can apply via this form.

Japanese mobile gaming company Gumi is the latest to join US-based L1 blockchain Injective as a validator.

With the validator slots limited to 60 companies, Gumi is the only Japanese company selected by Injective. Gumi is also a validator for Japanese gaming blockchain Oasys.

Best known internationally for mobile games like Brave Frontier and Final Fantasy Brave Exvius, Gumi is a leading mobile game publishers with a catalogue including both its own games as well as third-party IP titles. In 2018, the company launched Gumi Cryptos, a $30 million fund investing into early stage blockchain projects in any sector, not just games.

More recently, the company founded a new web3 gaming venture in Singapore, gC Games Singapore, which is the subsidiary now becoming an Injective validator.

“Gumi Group plans to continue participating in node operation for various blockchains in order to contribute to the construction of decentralized networks and industrial development in the blockchain field,” commented the company on X.

Mainly designed for finance, Injective also aims to expand players’ opportunities by offering enhanced security in blockchain gaming. It has become one of the largest proof-of-stake (PoS) blockchains worldwide. As one of its validators, Gumi will help to establish Injective’s footprint in Japan, where currently over five million users own crypto.

In terms of gaming, Gumi will offer its expertise as a publisher and developer, but also aims to onboard its users into the Injective network.

Incubated by Binance, Injective is backed by investors including Jump Crypto, Pantera and Mark Cuban.

Japan-based crypto exchange DMM confirmed a hack resulting in the theft of 4,502.9 BTC, valued at approximately 48 billion yen ($305 million).

In a May 31 statement, the exchange reported detecting an “unauthorized leak of Bitcoin” from its wallet around 1:26 pm Tokyo time on Friday, May 31, 2024.

Blockchain analytical firm Elliptic said the theft would be the eighth-largest crypto heist of all time and the largest since the $477 million hack suffered by the collapsed FTX exchange in November 2022.

Service suspension

Following the discovery, DMM promptly suspended crypto withdrawals and restricted all spot-buying activities to prevent further losses. The firm also warned that fiat Japanese yen withdrawals might face delays.

The exchange assured affected users that stolen funds would be reimbursed, although it did not provide a specific repayment timeline. DMM stated:

“Please rest assured that all of your Bitcoin (BTC) deposits will be fully guaranteed, as we will procure the equivalent amount of BTC that was leaked with support from our group companies.”

Additionally, DMM did not specify when its services would resume but indicated that further information would be provided in a separate announcement.

Speculation within the crypto community suggests that the breach may have compromised all customer BTC holdings, affecting hot and cold wallets. However, the full extent of the breach remains unclear as of press time. Under local regulations, DMM is required to store at least 95% of customer crypto in cold wallets.

Meanwhile, this incident ranks among the largest crypto exchange hacks in Japan. In 2018, Coincheck suffered a theft of 58 billion yen ($533 million) in crypto. In 2014, the bankrupt Mt. Gox exchange lost over 140,000 BTC belonging to its customers.

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Japanese exchange Coincheck is set to join Coinbase as one of the two publicly listed exchanges in the United States, according to a May 8 statement.

The crypto trading platform expects to complete its listing on the Nasdaq via a partnership with special purpose acquisition company (SPAC) Thunder Bridge Capital Partners IV (THCP) by the second or third quarter of this year.

When the merger is completed, Coincheck Group BV will be renamed Coincheck Group NV and listed on the Nasdaq stock exchange under the ticker symbol CNCK. The company submitted the confidential registration statement, Form F-4, to the US Securities and Exchange Commission (SEC) on May 7.

Using a SPAC, the exchange will not have to go through the initial public offering process like Coinbase. SPACs are already public companies, which means all they do is invest in or merge with private companies.

However, Coincheck’s decision to go public via an SPAC might be a source of concern for investors, given how poorly most SPACs have performed in the public market.

In 2023, at least 21 firms that went public by merging with SPACs went bankrupt. The capitalization of companies that went public via SPAC has also dropped significantly, resulting in $46 billion in investor losses.

Coincheck is one of the largest crypto exchanges in Japan, with 1.98 million verified users. It has operated since 2014 and has a solid reputation spanning almost a decade.

US unfavorable regulatory regime

Coincheck’s public listing plans come as the SEC increased its regulatory scrutiny of the emerging industry.

Over the past month, the financial regulator has served crypto firms like Consensys, decentralized exchange Uniswap, and Robinhood’s crypto arm with Wells Notices. The financial regulator contends that these firms’ operations violated local securities law.

In a recent interview, SEC Chair Gary Gensler reiterated that most cryptocurrencies are securities tokens and argued that these assets lack the necessary disclosures to protect investors.

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Crypto firm Ripple is expanding its XRP Ledger (XRPL) enterprise solutions to Japan through a strategic collaboration with HashKey DX, the Tokyo-based specialized consulting company of the HashKey Group, according to an April 30 statement.

In this partnership, HashKey DX will work alongside Ripple and SBI Ripple Asia—a collaboration between SBI Holdings and Ripple—to develop and implement supply chain finance solutions tailored for the Japanese market.

HashKey Group brings valuable expertise and a track record of successful blockchain-powered supply chain finance solutions in mainland China. Its existing solution, launched in 2019, boasts over 4,000 registered companies, including 23 banks and 4,300 suppliers, and has facilitated trade transactions exceeding $7 billion and financing transactions nearing $3 billion.

The company hopes to repeat this success by delivering “meaningful transformation and introducing innovative, cutting-edge solutions for businesses in Japan.”

Andy Dan from HashKey DX said:

“The XRPL was the ideal blockchain infrastructure for us to build our proven supply chain finance solution, with its proven enterprise track record and unmatched performance metrics, including rapid settlement speeds, low costs, and scalability.”

Ripple, SEC battle continues

In the ongoing legal tussle between Ripple and the US Securities and Exchange Commission (SEC), fresh developments have emerged regarding the potential testimony of SEC accountant Andrea Fox and its implications for the crypto company’s fines.

Ripple had contested Fox’s testimony, asserting that the SEC cannot designate her as an expert witness to introduce new information.

In response, the SEC argued that Fox serves as a summary witness whose report does not rely on specialized expertise or offer expert opinions. Instead, it simply applies basic arithmetic to Ripple’s financial records to present evidence efficiently to Judge Torres.

The SEC initially sought penalties totaling approximately $2 billion against Ripple. However, the Brad Garlinghouse-led company proposed a more modest $10 million fine, disputing the severity of the regulator’s requested penalties.

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Crypto casinos, which are becoming popular in Japan, are online casinos that allow players to gamble using cryptocurrencies instead of actual FIAT, Yen, or dollars. These casinos accept virtual currencies, primarily Bitcoin and Ethereum, rather than traditional currencies.

Why Are Crypto Casinos Users Increasing in Japan?

There are several reasons why the number of crypto casino users is increasing in Japan.

Cryptocurrency allows players to remain anonymous, as they do not have to provide any personal information. This lowers the risk of personal information being leaked and allows players to feel that their privacy is protected. The unique Japanese character, with its emphasis on safety, may also be a good match for the use of cryptocurrency.

Cryptocurrencies typically offer faster deposits and withdrawals than bank transactions or credit cards. Players can initiate bets and withdraw winnings quickly, increasing convenience. Since credit cards are not accepted for online casino withdrawals in Japan, more and more people are finding the convenience of cryptocurrency.

Furthermore, while casino gambling is restricted in Japan, cryptocurrencies allow access to foreign online casinos, allowing players to enjoy many games. This is a huge advantage, and cryptocurrencies are the best payment method for enjoying casino games that cannot be enjoyed domestically.

Some players in Japan may not like to gamble with high stakes, and cryptocurrency allows them to enjoy gambling with small amounts. This is another reason why a wide segment of the population participates in cryptocurrencies.

Online Casinos Receive Bonuses with Cryptocurrency

Some online casino sites offer bonuses in cryptocurrency to players who deposit in cryptocurrency. This is a promotion specific to casinos that accept virtual currency; for example, you may receive a percentage of your deposit as a cryptocurrency bonus.

Some casinos may offer free spins for cryptocurrency deposits. This allows you to play slot games for free.

Special crypto promotions are also popular in Japan. Some casinos may offer special promotions for certain cryptocurrencies. These include tournaments and raffles.

However, only a few casinos still offer bonuses in cryptocurrency, and bonuses in other currencies such as other yen or dollars are the most common. When using cryptocurrency, it is important for players to carefully review the casino’s terms and conditions and understand the conditions and requirements of the bonuses offered. It is also important to choose a reliable casino. Of course you should choose a secure cryptocurrency exchange as well.

Taxes on profits made at crypto casinos.

In Japan, online casino taxes are generally due when you earn over 500,000 yen. However, different payment methods require different types of taxes. If you use Bitcoin or other cryptocurrency at an online casino, the rule is that you must pay taxes when you earn more than 200,000 yen.

• Legal tender and cryptocurrency tax amounts are different.

• If the price rises and a profit is made when it is pending in your account, that portion is not taxable.
• it becomes taxable when a transaction such as a purchase, sale, or redemption is made.

This may seem a little complicated, but you don’t need to worry about it because you will just file your taxes as usual. Nowadays, more and more businesses are using cryptocurrency, and the procedure for filing is very carefully informed. You can also refer to Cryptocurrency Taxes or more information from this Online casino in Japan site.

Japan’s Prime Minister Fumio Kishida has announced plans to increase investment in NFTs and the Metaverse, aiming to expand the use of Web3 services and achieve digital transformation. 

Japan: Prime Minister promotes investment in the metaverse and NFTs

In Japan, Prime Minister Fumio Kishida gave a speech to parliament announcing his intention to invest in the country’s digital transformation, which includes Web3 services such as NFT and Metaverse. 

Japan’s Prime Minister says the country plans to invest in #NFTs and #metaverse services.

— Watcher.Guru (@WatcherGuru) October 5, 2022

“Japan’s Prime Minister says the country plans to invest in NFTs and metaverse services.”

The policy speech by Kishida focuses on revitalizing Japan’s economy by dedicating resources to doubling household wealth and supporting and helping the growth of the country’s Web3 enterprises. 

Kishida’s strategy also includes the expansion of NFTs and the metaverse, with the issuance of Non-Fungible Tokens to local authorities using the technology to meet jurisdiction-specific issues.

Japan: NFT and metaverse for the country’s digital transformation

Kishida, in office since 2021, is a strong supporter of Web3 development, evaluating it as one of the pillars of economic reform.  

In addition to the current announcement to strengthen investments for the country’s digital transformation that includes NFTs and metaverse, last summer Kishida had proposed a tax exemption for cryptocurrency-issuing companies.

Not only that, Kishida called for the enhancement of a tax relief program for individual crypto investors as well. 

This is thus a new situation compared to the 30% tax on crypto profits, including unrealized profits, that is in place in Japan. 

Kishida’s proposal has seen support from some local politicians, so much so that it has been suggested that the FSA, Japan’s financial regulator, may decide to make it its own. Also, with the fact that many Japanese crypto companies have long been moving abroad, such as Singapore, the FSA’s decision on the matter could stop this flight. 

NFT prizes for mayors

Recently, Kishida awarded POAP NFTs to all mayors who, through their actions, support the growth and spread of new technologies in the country, including Blockchain. 

Proof of Attendance Protocols, or POAP NFTs, are actual Non-Fungible Tokens that are distributed to people attending tech events. These are digital certificates that replace badges and, precisely, certify attendance at a physical or virtual event. 

Issued on the Ethereum Blockchain, NFT POAPs were awarded as prizes at the 2022 Summer Digi Denkoshien by Hirokazu Matsuno and Prime Minister Kishida. These are awards issued by the highest administrative bodies of the state, and therefore cannot be reissued to the market. 

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Prime Minister Kishida, in charge of the Japanese government since October last year, seems to be projecting his economic development plan primarily on the use and development of the vast potential of Web 3.0.

Minister Kishida’s vision is referred to as “New Capitalism.” The politician has even pledged to double household wealth and is studying various incentives to reinvigorate the country’s economy, including through the world of cryptocurrencies.

NFTs for those who support blockchain in Japan

Prime Minister Kishida has decided to gift POAP NFT to all mayors who, through their actions, support the growth and spread of new technologies in the country.

The PMs, therefore, must commit themselves to use, or rather, harness the extraordinary potential of blockchain technology.

After all, it is important to remember that the exciting blockchain technology has endless applications.

The contexts in which it can be exploited are many, even though it has been used primarily in fintech contexts so far. This in no way precludes its other thousand potential applications.

All of this is absolutely a great sign for the Web 3.0 world that it is finally getting all the attention it deserves, after years of popularization and hard work to make it a more user-friendly alternative.

Returning to the news of the day, it is worth pointing out that the blockchain of choice was the Ethereum blockchain.

The first citizens were honored at the Summer Digi Denkoshien 2022 by Hirokazu Matsuno and Fumio Kishida, Japan’s Chief Cabinet Secretary and Prime Minister, respectively.

The tokens under consideration take on a high symbolic value, as awards issued by the highest administrative bodies of the state, and consequently cannot be reintroduced on the market. 

These NFTs represent great recognition for mayors who have demonstrated virtuous use of blockchain in administering the territories under their jurisdiction. An unprecedented event.

What are POAP NFTs

This section will discuss the main features of this Web 3.0 tool, discovering the peculiarities of POAPs.

POAP is the acronym for Proof of Attendance Protocol. These are actual NFTs that are distributed to people attending fintech events. Hence, they are digital certificates that take the place of old and boring badges.

POAPs are, for all intents and purposes, certificates of participation in a virtual or physical event. 

Technically speaking however, POAPs are Ethereum-based ERC-721 tokens.

A POAP is a digital remembrance on the blockchain.

Moreover, these are fully owned by those who earn them as certificates of participation, but they can be traded and sold while keeping the original owner traceable at all times. 

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