There is a possibility that the government of Japan may strive to promote the use of non-fungible tokens (NFTs) in the sports business.
According to Nikkei, Tokyo may relocate once the ruling Liberal Democratic Party Web3 “Digital Society Promotion” team publishes a white paper on the subject.
Although the white paper has not yet been released, it would appear that sources have already discussed the topic in great depth with the media outlet.
According to Nikkei, the purpose of the white paper will be to shed light on the regulatory landscape for NFT-issuing companies and the possible sporting partners of these companies.
How Might Japan Make Use of NFTs in Sports, and What Are the Drawbacks to This Approach?
The Web3 team has noticed that “fantasy sports” are “becoming more popular in other countries.” Because of this, they want to “encourage” domestic “companies” to “enter” the industry.
Popular sports in Japan include baseball and football (soccer), which both have sizable fan bases.
As a consequence of this, any potential Japanese NFT-powered fantasy league will undoubtedly experience significant levels of participation and success.
On the other hand, Japan’s anti-gambling regulations are quite stringent, which might prove to be an obstacle.
The majority of commercial activities that involve participants paying a staking fee are illegal under Japanese law.
This could provide a challenge for owners of fantasy sports websites that use NFTs, as some of these sites require players to pay “entry fees” in order to participate.
Cooperating with companies based in other countries could potentially provide challenges.
The following is an explanation provided by the Japanese media site CoinPost:
“A Japanese sports organisation that gives a licence to an overseas business operator and it is obvious that this licence is used for gambling may be guilty of the crime of aiding and abetting gambling if it is clear that this licence is used for gambling,”
It is anticipated that the white paper will recommend to businesses that they circumvent this issue by asking sponsors to offer prize money and prizes.
The purpose of this report will also be to “clarify the regulatory environment” for non-traditional sports teams and sports organizations.
Additionally, the group will provide assistance in the formation of an “industry group” for businesses that make use of NFTs.
In addition to this, it will make a request that both the public and commercial sectors “collaborate to draught guidelines.”
The Web3 team collaborates with a specialized NFT taskforce, which began operations in 2022 after being established.
A government minister for Web3 was something that the group strongly suggested should be appointed in Tokyo around a year ago.
Prime Minister Fumio Kishida has made several public statements in support of the concept of expanding the country’s blockchain, metaverse, non-fungible token, and cryptocurrency businesses.
During a meeting with UK-based investors from the previous year, he emphasized the nation’s commitment to Web3-powered business development.
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