Last week, Japanese indie developer Nupuryu – creator of adult games like Ruins Seeker and Yarimono – reported that their bank was refusing to process an international transfer from their publisher related to proceeds from one of their games. In a new blog post (link is NSFW), they expanded on the issue, sharing another troubling consequence of the so-called “debanking” issue that has been affecting some adult game developers in Japan.
According to Nupuryu, income generated from overseas sales is still recognized as taxable revenue under domestic rules, even if the payment itself is blocked and never reaches the developer’s bank account. This latest case stems from revenue generated by an adult game by Nupuryu sold on Steam through a Taiwan-based publisher. After the publisher initiated an international wire transfer to Rakuten Bank, one of Japan’s largest online banks, the bank requested additional documentation citing compliance requirements, including information about the transaction and a copy of the game’s publishing agreement. Although Nupuryu submitted what was asked of them, the transfer was ultimately rejected, with the bank refusing to disclose the reason for its decision.
While Nupuryu says they had already anticipated the possibility of the transfer being denied, they mention that the tax issue makes the situation particularly troubling. According to the dev, the unpaid overseas revenue must still be recorded as accounts receivable for tax purposes, meaning income tax obligations arise regardless of whether the money is successfully transferred into Japan. The developer gave a hypothetical example in which 30 million yen in overseas profit would still result in roughly 10 million yen in Japanese tax liability, even if the funds never actually reached their account. They describe the situation as “way too brutal.”
Nupuryu believes that receiving overseas revenue from adult games has grown significantly more difficult over the past five years. While banks have tightened anti-money laundering measures in recent years, the developer argues that they are, much like credit card companies, effectively restricting legal adult content by refusing to process payments without explaining their reasoning.
With the latest transfer rejected, Nupuryu says they are now exploring other banks and payment methods with their overseas publisher. The developer also plans to continue documenting which financial institutions accept or reject future transfers.
