Japan may push for non-fungible tokens (NFTs) to be used in the sports business. According to Nikkei, Tokyo may adopt this decision following the issuance of a white paper on the matter. The Liberal Democratic Party’s Web3 team will issue the paper titled “Promotion of the Digital Society.”
The issue appears to have been thoroughly explored with the media by anonymous individuals. According to Nikkei, the white paper would strive to clarify the regulatory environment for NFT issuing businesses and potential sports partners.
Japan has Tough Anti-Gambling Laws
The Web3 team stated that “fantasy sports are growing in popularity worldwide” and that they would like to “push” domestic enterprises to invest in the field. Baseball and football (soccer) are extremely popular in Japan. As a result, any NFT-powered Japanese fantasy league would surely be extremely popular.
But, Japan‘s tough anti-gambling laws may be a deterrent. Most commercial activities that solicit money from participants are illegal in Japan. This might be a concern for fantasy sports operators that utilize NFTs, as some charge “entry fees” to players. Dealing with overseas firms may also provide certain challenges.
Web3 Initiatives are Supported by the President
“If a Japanese sports organization offers a license to a foreign commercial operator and it is evident that this license is utilized for gambling, it may be guilty of the crime of inciting gambling,” according to the Japanese media site CoinPost.
The whitepaper will most likely suggest that businesses work around this problem by asking sponsors to pay cash rewards. In addition, the paper would strive to “clarify the regulatory environment” for NFT operators and sports clubs.
The team will also advocate for the formation of an “industry organization” for businesses that employ NFTs. It will also urge the public and commercial sectors to “collaborate to develop recommendations.” The Web3 team collaborates with a specific NFT working group, which was established in 2022.
The team advised that Tokyo hire a Web3 government minister around a year ago. Prime Minister Fumio Kishida has consistently advocated for the development of national blockchain, metaverse, NFT, and even cryptocurrency businesses. At a meeting with UK-based investors last year, he emphasized the country’s commitment to Web3-based company development.