Recently, an increasing number of executives and investors want to use profits from cryptocurrencies (crypto assets) like Bitcoin as capital (30 million JPY or more) to obtain a “Business Manager Visa” and start a business in Japan. However, in the screenings by the Immigration Services Agency of Japan, cryptocurrency is subject to extremely strict checks from the perspective of anti-money laundering. Simply showing a screen with “millions of dollars in a wallet” will result in a 100% rejection. This article explains the legal logic for proving that non-transparent crypto assets are legitimate “business funds” recognized by Immigration.
1. Cryptocurrency Cannot Be Invested As-Is (In-Kind Contribution)
As a major premise, under current Japanese company law and immigration screening practices, it is extremely difficult to record cryptocurrency “as is” (in-kind) as capital.
What is required in the screening of the Business Manager Visa is that **”the funds are deposited in a bank account in Japan as fiat currency (Japanese Yen).”** Therefore, the absolute requirement is to first sell (realize profits) the cryptocurrency on an overseas or domestic crypto exchange, convert it to fiat currency, and then transfer it to the bank account of the founder (or co-founder).
2. Three Ironclad Rules for Proving “Fund Formation” to Crush Immigration’s Doubts
After converting the cryptocurrency to fiat currency, what Immigration will strictly pursue is, **”How did you earn the original funds to buy that cryptocurrency in the first place?”** If you cannot prove this, the funds will be rejected as “money of unknown origin.” You must perfectly prepare the following three types of evidence.
① Proof of “Original Funds” for Initial Investment
Prove where the purchase money came from when you bought the cryptocurrency several years ago. Proof at the entry point, such as salary slips from that time, tax returns, or profits from the sale of real estate, showing that you “bought cryptocurrency with legally obtained funds,” is indispensable.
② Transaction History of the Exchange
Submit records (such as CSV data) of your trade history, mining history, staking rewards, etc., on the exchange from the time you invested the original funds up to the present, visualizing the “process by which the funds legally amplified.” If there are many non-transparent P2P (peer-to-peer) transfer records, the screening risk will skyrocket.
③ “Continuity of Fund Movement” Between Bank Accounts
Submit a seamless record of the funds moving from [Crypto Exchange] → [Bank Account in Home Country] → [Bank Account in Japan] (remittance statements, SWIFT messages, copies of bank books, etc.) to prove that the flow of funds is continuous without a single yen discrepancy.
3. Tax Risk: Timing of Profit Realization and Japanese Tax System
In a visa acquisition strategy using cryptocurrency, “taxation” is just as important as legal affairs. If you sell (realize profits) cryptocurrency after becoming a resident in Japan, the Japanese tax system will apply, and you may be subject to a comprehensive tax (miscellaneous income) of up to 55%.
To prevent this, it is essential to have a prior tax plan: **Before entering Japan (becoming a resident), lawfully realize the profits under the tax system of your home country, and bring the money into Japan as clean, after-tax fiat currency.**
Conclusion: Only Overwhelming Transparency Breaks Through the Screening
Capital formation using cryptocurrency is by no means impossible. However, compared to the case where a regular company employee starts a business with savings, the screening hurdle at Immigration jumps several times higher. A meticulous logical construction is required, supported by objective evidence and a statement of reasons that the immigration examiner cannot refute, detailing “where it came from, how it increased, and how it arrived in Japan.”
For more detailed requirements or strategies to recover from an unexpected rejection, please check the comprehensive portal below.