The Japanese authorities might push to undertake non-fungible tokens (NFTs) within the sports activities trade.
Nikkei reported that Tokyo might transfer after the ruling Liberal Democratic Social gathering Web3 “Digital Society Promotion” workforce points a white paper on the matter.
The white paper is but to be printed, however sources seem to have mentioned the matter intimately with the media outlet.
The white paper, Nikkei defined, will search to make clear the regulatory image for NFT-issuing corporations and their potential sporting companions.
How Might Japan Use NFTs in Sport – And What Are The Issues?
The Web3 workforce has famous that “fantasy sports” are “gaining popularity overseas” and desires to “encourage” home “companies” to “enter” the sector.
Sports like baseball and soccer (soccer) have huge followings in Japan.
As such, any attainable Japanese NFT-powered fantasy league would likely get pleasure from nice recognition.
Nevertheless, Japan’s strict anti-gambling legal guidelines might present a stumbling block.
Japanese regulation outlaws most enterprise actions that collect stake cash from individuals.
This might pose an issue for fantasy sports activities operators who make use of NFTs, as some require individuals to pay “entry fees.”
Working with abroad corporations is also problematic.
The Japanese media outlet CoinPost defined:
“If a Japanese sports organization provides a license to an overseas business operator, and it is clear that this license is used for gambling, it may be guilty of the crime of abetting gambling.”
The white paper is more likely to advocate that firms get round this by asking sponsors to offer prize cash and prizes.
The paper may even search to “clarify the regulatory environment” for NFT operators and sports activities groups.
The workforce may even help the institution of an “industry group” for corporations that make use of NFTs.
It is going to additional request that the private and non-private sectors “work together to formulate guidelines.”
The Web3 workforce works alongside a devoted NFT taskforce, which was launched in 2022.
Round a yr in the past, the workforce advisable that Tokyo appoint a Web3 authorities minister.
Prime Minister Fumio Kishida has repeatedly talked up the concept of growing the nation’s blockchain, metaverse, NFT, and even crypto industries.
He underlined the nation’s dedication to Web3-powered enterprise improvement at a gathering with UK-based traders final yr.
