Japanese Regulator Looks Set to Reform Crypto Gaming Laws
Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...
The top Japanese regulator, the Financial Services Agency (FSA), has reportedly signaled it is ready to reform that nation’s crypto gaming laws.
Per the Japanese media outlets Nikkei and CoinPost, the FSA is also set to “discuss the creation of a system” that would “make it easier for businesses” to “handle cryptoassets.“
Nikkei reported that a working group of the Financial System Council will aim to “revise” the existing Payment Services Act.
The reforms could reportedly make it easier for corporations to “handle” in-game cryptoassets.
This, in turn, could “encourage more major domestic companies” to foray into the blockchain gaming sector.
As is the case in nearby South Korea, Japan has no shortage of large gaming companies. However, many of these have taken a non-committal stance on blockchain gaming.
For the most part, this is due to Tokyo (and Seoul)’s strict regulation of three key sectors: crypto and crypto exchanges, video games, and gambling.
However, Tokyo has been trying to reform its crypto-related laws after pressure from the industry.
Political opponents have accused the ruling Liberal Democratic Party (LDP) of forcing Japanese web3 startups overseas.
The government has already responded by relaxing tax rules for crypto-holding firms. It is expected to follow up with tax reforms for individual crypto traders.
Political uncertainty and the surprise prominence of a reflationist-minded candidate in Japan's ruling party leadership race may add pressure on the central bank to go slow on raising interest rates further away
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