Where else can I go if I flee Singapore? - Japan Edition I didn't expect the spinach's interpretation of Singapore's new regulations to have such a significant impact, clarifying the shocking outcome for MAS 😂 But the impact is still significant. In this context, an age-old yet urgent issue is once again presented before us: If I were to escape Singapore, where else could I go? If you are an institution/project party planning long-term compliance development and are rejected by Singapore's high compliance threshold, then Japan may be one of your best choices Why Japan? An unexpected safe haven If you think Japan is just synonymous with anime, sushi, and overwork culture, then you may need to rediscover this neighboring country. In the Web3 field, Japan is becoming one of the most promising destinations in Asia in a low-key yet pragmatic manner. Unlike Singapore's "regulatory arbitrage" model, Japan is taking a different path: steady and compliant development. This may not sound exciting enough, but for those who have experienced the collapse of FTX, the Terra Luna explosion, and the global regulatory storm of Binance, "boring" stability may be what they need most now. Tax Policy in Japan Currently, cryptocurrency earnings are classified as "miscellaneous income" in Japan and are subject to a comprehensive tax rate of up to 55%. But this situation is about to change - it is expected that Japan will pass a new financial commodity trading law next year, and after legal amendments, the tax rate will be reduced to a fixed rate of 20%. Even more interestingly, by holding cryptocurrency in a company, the tax rate can be further reduced to 15-23%. This tax optimization space, combined with Japan's relatively complete financial infrastructure, provides a survival environment worth considering for Web3 enterprises. Regulatory environment: strict but predictable Japan's regulatory system is known for its strictness, but it possesses a precious trait: predictability. The Financial Services Agency (FSA) of Japan has collaborated with the Japan Cryptocurrency Exchange Association (JVCEA) to establish a relatively mature regulatory framework. Currently, there are 28 registered exchanges in operation, and Circle's USDC has been approved as the first foreign stablecoin to circulate in Japan. More importantly, the Japanese government has a positive attitude towards Web3. The Ministry of Economy, Trade and Industry has approved amendments to promote investment in Web3 companies, including Sony, Bandai Namco NTT Docomo、KDDI、 Major corporations such as Toyota have made significant investments in the Web3 field. This top-down support has created a relatively friendly ecological environment. Of course, strict regulation also means higher compliance costs. As a provider of encrypted asset trading services (CESP), the registration process may take up to six months and involve strict cybersecurity and anti money laundering requirements. But from a different perspective, this strictness also implies the relative stability of the industry ——At least you don't have to worry about waking up one day to find that the regulatory rules have completely changed. Visa options: From digital nomads to permanent residency For Web3 practitioners at different levels, Japan offers a diverse range of visa options that Singapore currently cannot provide. --Digital Traveller Visa This visa is the latest option. The visa introduced in 2024 allows qualified foreigners to live in Japan for six months and work remotely for overseas companies. The application requirements are not strict: annual income exceeding 10 million yen (approximately $65000), purchase health insurance covering 10 million yen, from 49 countries (including Singapore) that have visa free agreements with Japan. Although this visa is non renewable and does not allow for local employment in Japan, six months is sufficient for Web3 practitioners who need time to buffer and re plan to complete a lot of preparation work. --Business management visa If you have a longer-term plan, a business management visa may be a better option. This visa allows foreigners to conduct business operations or management activities in Japan. The requirements include: registered capital of more than 5 million yen, having an independent office, and submitting a feasible business plan. It is interesting that real estate investment may also be a way to obtain a business management visa. If real estate investment is carried out as an actual business, such as leasing or homestay operation, it is indeed possible to apply for a business management visa through this method. This provides a win-win option for Web3 professionals who want to invest and relocate. --Highly Professional Talent Visa The highly specialized talent visa is designed for individuals with specific abilities in the fields of technology, academia, or business management. Through the points based evaluation system, those who score 70 or above can directly obtain a 5-year residency period, while those who score 80 or above can even apply for permanent residency after 1 year. For many Web3 technical talents, this threshold is not high. Cost of Living: Realistic Considerations for Tokyo vs Osaka When it comes to Japan, many people's first reaction is' too expensive '. But this impression may need to be updated. Taking Osaka as an example, the monthly living expenses (excluding rent) for single adults are approximately 121246 yen (about 840 US dollars), and the average rent for a single apartment starts at 40000 yen (about 277 US dollars). In contrast, Tokyo's expenses are indeed higher: a monthly living allowance of 143000 yen (about 990 US dollars), and an average rent of 81000 yen (up to 100000-30000 yen in popular areas) (about 560-2080 US dollars). But if we consider the cost of living in Singapore, this gap may not be as big as we imagine. More importantly, Japan offers more options - you can choose to enjoy an international environment and more opportunities in Tokyo, or experience a relatively relaxed pace of life and lower costs in Osaka. For Web3 practitioners, Shibuya, Shinjuku, and Minato ku in Tokyo are good choices, as these places are home to a large number of technology companies and shared workspaces. The southern, northern, and main districts of Osaka also have their own characteristics, which can meet different work and life needs. Here is a piece of news that may surprise many people: foreigners can own real estate with permanent property rights in Japan, regardless of your nationality, residence or visa type. Reality Challenge: Japan is not a perfect utopia We have talked about so many advantages of Japan, but we cannot avoid the challenges of reality: Firstly, there is a language barrier: despite Tokyo's increasing level of internationalization, Japanese remains the primary language for business and daily life. For Web3 practitioners who are accustomed to the English speaking environment in Singapore, this is indeed a challenge that needs to be overcome. Secondly, cultural adaptation: Japan's work culture is known for its rigor and clear hierarchy, which may conflict with many Web3 companies' emphasis on flatness and flexibility. How to adapt to the local environment while maintaining corporate culture is a problem that requires careful consideration. The third is regulatory compliance costs: Although Japan's regulatory environment is relatively stable, strict compliance requirements also mean higher operating costs. For small teams or startups, this can be a significant burden. Finally, market acceptance: Although the Japanese government supports the development of Web3, the acceptance of consumers and businesses is still in the cultivation stage. Unlike Singapore serving as a "springboard" to serve the global market, Japan may need to consider more on how to serve the local market. Transfer Practice: From Theory to Practice If you have made up your mind to try Japan, what is the specific migration path? For individuals, the most direct way is to apply for a digital nomad visa first, use six months to conduct on-site inspections, understand the market environment, and establish preliminary network relationships. During this period, it is possible to prepare application materials for both the business management visa and the high-level talent visa simultaneously. For enterprises, establishing a Japanese branch is a necessary first step. This process includes company registration, office leasing, bank account opening, and other steps. If the business involves cryptocurrency trading, it is also necessary to consider applying for the corresponding license from the FSA. It is worth noting that acquiring an existing Japanese cryptocurrency exchange license may be a faster option. Although the cost is higher, it can avoid a lengthy application process and quickly enter the market. Advertising time: We will help you 'migrate' After discussing so many theories, some friends may ask: I understand the principles, but how can I operate them specifically? After all, it sounds simple to "migrate" from Singapore to Japan, but the actual operation may be more complicated than learning to eat Lamian Noodles with chopsticks. The good news is that you don't have to cross the river alone by feeling the stones. Spinach and my Japanese partners are ready for this - specifically providing one-stop migration services for Web3 partners who want to "retreat" from Singapore to Japan. Our service menu includes but is not limited to: Enterprise Service Package: The entire process of company establishment Assistance in the Acquisition of Cryptocurrency Exchange Licenses Opening a corporate bank account Corporate tax consulting Japanese Yen OTC Personal service package: Visa and Immigration Services Personal tax guidance Social Security and Healthcare House rental and purchase Lifestyle services and meals: Other related services: Basically, besides teaching you how to bow correctly and say "すみません", we can help with anything else A small side job, welcome bosses to learn more