Japan’s Financial Services Agency (FSA) has announced plans to reform the country’s regulatory framework regarding crypto games. This move, according to the report, seems to be aimed at helping businesses manage their digital currency assets better and “stimulating” growth in the blockchain gaming sector.
With the change, the FSA is reportedly making the market “more accessible” to gaming companies by revising the existing Payment Services Act and establishing a streamlined rule for in-game digital currency management.
Crypto Rules Promoting Blockchain Gaming
According to a recent upload from a Japanese news outlet, the region’s Financial System Council, a policy-making body, is working on new rules to “encourage innovation and development” within the domestic crypto-gaming industry.
These moves directly mark a major policy shift in Japan’s traditionally strong position in the gaming and gambling sectors, opening the door to the expansion and adoption of blockchain gaming in the country.
The overhaul of the rules is said to focus more on “in-game money management.” Under the proposed changes, businesses will be able to manage digital currency assets more seamlessly, promoting a more digital currency-friendly environment for both startups and established gaming companies.
In addition, discussions on revising asset management rules are ongoing, with regulators considering comprehensive reforms to support cryptocurrency integration in the gaming industry.
The translation of the report reads as follows:
The Financial Services Agency will begin discussions on creating a system that will make it easier for businesses to manage crypto assets (virtual money). This may reduce the burden of obtaining payment funds and make it easier to purchase items and other items in games using crypto assets, as is the case overseas.
What This Means for the Blockchain Gaming Industry in Japan
Japan’s recent move and recent announcement of tax changes shows the country’s effort to be crypto-friendly when it comes to its regulations. According to the report, discussions on changes to regulate digital currency games have already started on September 25, 2024.
The effects of Japan’s crypto gaming regulatory reform may create a more balanced environment for gaming companies in the region, able to explore integrated digital currency business models without facing restrictive regulations.
Additionally, the proposed changes have the potential to significantly change the way businesses handle in-game cryptocurrencies in Japan.
With this, companies may now begin to find it easier to include digital currency assets in their gaming platforms, which may attract new participants to the space and encourage market growth.
The updated rules reflect a broader trend in the direction of the changing conditions in the crypto space, which is consistent with global movements from other countries such as Hong Kong and Singapore to support the development of Web3 in general.
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