Japan’s Financial Services Agency (FSA) has announced plans to reform the country’s regulatory framework on crypto gaming. This move, according to the report, appears to be aimed at assisting businesses in managing their digital currency assets better and to “stimulate” growth in the blockchain gaming sector.
With the reform, the FSA is reportedly making the market “more accessible” to gaming companies by revising the existing Payment Services Act and establishing a structured law for in-game digital currency management.
According to a recent upload from a Japanese news outlet, the region’s Financial System Council, a policy-making body, is working on new regulations to “encourage innovation and development” within the domestic crypto-gaming industry.
These steps specifically mark a major policy shift from Japan’s traditionally strict stance on the gaming and gambling sectors, opening the doors for further expansion and acceptance of blockchain gaming in the country.
The overhaul of regulations is said to focus primarily on “managing in-game cryptocurrencies.” Under the proposed changes, businesses will be able to manage digital currency assets more seamlessly, fostering a more digital currency-friendly environment for both startups and established gaming corporations.
Moreover, discussions on updating asset management rules are underway, with regulators considering broader adjustments to support the integration of cryptocurrencies in the gaming industry.
The translation of the report read:
The Financial Services Agency will begin discussions on creating a system that will make it easier for business companies to handle crypto assets (virtual currencies). This could reduce the burden of securing funds for repayments and make it easier to purchase items and other items in games using crypto assets, as is the case overseas.
Japan’s latest move along with its recent startup tax reform announcement signals the country’s effort to become more crypto-friendly when it comes to its regulations. According to the report, the discussions on digital currency gaming regulatory reforms already commenced on September 25, 2024.
The implications of Japan’s crypto gaming rule adjustments could create a more balanced environment for gaming companies in the region, enabling them to explore digital currency integrated business models without facing prohibitive regulations.
Additionally, the proposed reforms hold the potential to significantly change how businesses handle in-game cryptocurrencies in Japan.
With this, companies may now start finding it easier to incorporate digital currency assets into their gaming platforms, which may attract new participants to the space and promote market growth.
The revised laws reflect a broader trend towards more flexible regulation in the crypto space, aligning with the global movement from other countries such as Hong Kong and Singapore to support the development of Web3 in general.
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