Japan Regulator Prepares to Reform Crypto Gaming Laws

Japan’s Financial Services Agency (FSA) has reportedly signaled its intention to reform the nation’s crypto gaming laws.

According to reports from Japanese media outlets Nikkei and CoinPost, the FSA is discussing the development of a framework that would simplify how businesses manage cryptoassets.

These reforms are expected to focus on revising the Payment Services Act, which currently governs the use of cryptocurrencies in various sectors. The aim is to make it easier for companies to handle cryptoassets, particularly within the gaming industry. Due to existing regulatory constraints, many major domestic gaming companies have been cautious about exploring blockchain gaming.

Japan’s current regulations require firms that use tradeable in-game currencies or cryptoassets to maintain sufficient funds to refund users in case of a security breach or other incidents. This rule has been cited as a significant obstacle for gaming companies incorporating blockchain technology. The FSA reportedly considers changes to ease this requirement to make it less burdensome for gaming firms.

Asset management practices for companies dealing with cryptoassets are also under review. The FSA has reportedly begun discussions on these topics in a working group of the Financial System Council, its main advisory body.

Pressure for Regulatory Changes

The push for regulatory reform comes after pressure from industry players and political figures who argue that Japan’s current system hinders the development of web3 businesses. Critics claim that some startups are forced to operate overseas due to the regulatory environment. Masaaki Taira, the chairman of the Liberal Democratic Party’s web3 policy unit, has pointed out that Japan’s tax system is not well-suited to modern crypto startups. He noted that accounting firms face difficulties conducting audits when companies issue tokens that are not widely recognized, such as Bitcoin.

Japan has already tried to address these concerns by relaxing tax rules for firms holding cryptoassets. Additional changes, including tax reforms for individual crypto traders, are reportedly being considered.

Meanwhile, the Shiba Inu ecosystem began its first phase of Shiba Eternity beta testing on August 21, granting access exclusively to users with staked LEASH tokens on ShibaSwap. In the next phase, selected Shiba Inu NFT holders, such as Shiboshi, SHEboshi, and Shiba Eternity Lore NFT owners, will be invited to participate in the closed beta of the Web3 version. Despite being in beta, the game has introduced features like ranked tournaments to improve the player experience.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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