Japan Business Manager Visa: Legal Procedures for Proving Cryptocurrency Funds and Avoiding Denial

This article is written by a Japanese local.

In recent years, an increasing number of executives and investors want to use profits gained from cryptocurrency (such as Bitcoin) as capital (30 million JPY or more) to start a business and obtain a Business Manager Visa in Japan.

However, during the screening by the Immigration Services Agency, fund formation via cryptocurrency is subjected to extremely strict checks from an anti-money laundering perspective. Merely showing a smartphone screen stating “I have an equivalent of hundreds of millions of yen in my wallet” will result in a 100% visa denial. This article explains the objective logical procedures required to make Immigration recognize opaque crypto assets as legal “business funds.”

1. Cryptocurrency Cannot Be Invested Directly (Contribution in Kind)

[Summary] Under Japanese Companies Act and Immigration practices, it is difficult to use cryptocurrency directly as capital. Conversion to fiat currency is an absolute condition.

As a major premise, the procedure for contribution in kind under the current Japanese Companies Act is complicated. It is practically extremely difficult to record highly volatile cryptocurrencies “as is” as capital.

Furthermore, what is required in the Business Manager Visa screening is “that the funds have arrived in a bank account in Japan as fiat currency (such as Japanese Yen).” Therefore, the absolute condition is to first sell (realize profits) the cryptocurrency at an overseas or domestic crypto exchange, convert it into fiat currency, and then remit it to the bank account of the promoter or co-representative.

2. Three Objective Processes to Prove Fund Formation

[Summary] After cashing out the cryptocurrency, you must prove the “source of the original investment” pursued by Immigration without a single yen unaccounted for using data.

After converting crypto into fiat currency, Immigration’s strictest inquiry is: “How did you earn the original funds used to buy that cryptocurrency in the first place?” If this cannot be proven, the application will be rejected as “money laundering with funds from an unknown source.” You must perfectly assemble the following three pieces of evidence.

① Proof of the “Original Source” of the Initial Investment

You must prove where the purchase money came from when you first bought cryptocurrency years ago (or longer). Proof of the entry source, such as salary slips, tax returns, or real estate capital gains from that time, showing that “cryptocurrency was bought with legally obtained funds,” is indispensable.

② Transaction History at the Exchange

Submit records (CSV data, etc.) of trade history, mining records, staking rewards, etc., at the exchange from the time the original funds were invested up to the present to visualize “the process by which the funds legally multiplied.” If there is a lot of opaque Peer-to-Peer (P2P) remittance history, tracing becomes difficult, and the screening risk skyrockets.

③ “Continuity of Fund Movement” Between Bank Accounts

Objectively prove that the flow of funds is continuous by submitting unbroken records (remittance statements, SWIFT messages, bankbook copies) showing the movement of funds from [Withdrawal from Crypto Exchange] → [Arrival at Home Country Bank Account] → [Overseas Remittance to Japanese Bank Account].

3. The 30 Million JPY Requirement and the Dilemma of “Tax Risks”

[Summary] The legal revision mandates 30 million JPY in capital. If you realize profits after becoming a resident of Japan, you risk facing massive taxes.

Due to the legal revision in October 2025, a “capital of 30 million JPY or more” is mandatory for the Business Manager Visa. When cashing out this massive amount from cryptocurrency, you must be just as vigilant about “taxes” as you are about the law.

If you sell (realize profits on) cryptocurrency after becoming a resident in Japan, Japanese tax law applies, and you may be subject to comprehensive taxation (miscellaneous income) at a maximum rate of 55% on the profits. To prevent this, prior tax planning is essential: legally realize your profits under your home country’s tax system before entering Japan (before becoming a resident), and bring it to Japan as clean, post-tax fiat currency.

4. Practical Q&A (Crypto-Specific Troubles)

[Summary] Answers practical questions such as how to prove funds in a cold wallet or handle cryptocurrency gifts from relatives.

Q. I have kept my cryptocurrency long-term in a hardware wallet (cold wallet) instead of an exchange. How do I prove this?

A. Identity cannot be verified by the cold wallet balance alone. You must cross-reference the “history of sending from the exchange to that wallet address” with the “history of sending from that wallet back to the exchange to convert to fiat currency,” using the Transaction ID (TxID) on the blockchain to prove the identity and ownership of the funds.

Q. I received an inter vivos gift in cryptocurrency (Bitcoin) from my parents, and I plan to sell it to use as capital.

A. This is possible. However, in addition to the “parent-child gift agreement” and “transaction history,” Immigration will require you to trace back and prove the “original source of funds when your parents purchased and accumulated that Bitcoin (proof of parents’ assets).” If the parents’ asset formation process is opaque, it will be subject to denial.

Conclusion: Only Overwhelming Transparency Clears the Screening

Forming capital using cryptocurrency is by no means impossible. However, compared to a standard company employee starting a business with salary savings, the Immigration screening hurdle jumps several times higher. It requires meticulous legal construction, utilizing objective data and rational statements of reasons at a level where the examiner cannot interject any doubt regarding “where it came from, how it grew, and how it arrived in Japan.”