Japanese authorities are considering promoting NFTs in sports
The Japanese government may push for the adoption of non-fungible tokens (NFTs) in the sports industry.
Nikkei reported that Tokyo could move after the ruling Liberal Democratic Party Web3 “Digital Society Promotion” team issued a white paper on the matter.
The white paper has not yet been published, but sources appear to have discussed the matter in detail with the media.
The white paper, Nikkei explained, will seek to clarify the regulatory picture for NFT-issuing firms and their potential sports partners.
How could Japan use NFTs in sports – and what are the problems?
The Web3 team has noted that “fantasy sports” are “gaining popularity abroad” and want to “encourage” domestic “companies” to “enter” the sector.
Sports such as baseball and football (soccer) have huge followings in Japan.
As such, any possible Japanese NFT-powered fantasy league would no doubt enjoy great popularity.
However, Japan’s strict laws against gambling can be a stumbling block.
Japanese law prohibits most business activities that collect stake money from participants.
This can pose a problem for fantasy sports operators using NFTs, as some require participants to pay “entry fees.”
Working with foreign firms can also be problematic.
Japanese media outlet CoinPost explained:
“If a Japanese sports organization grants a license to a foreign business operator, and it is clear that this license is used for gambling, it may be guilty of the crime of betting on gambling.”
The Stortings message will probably recommend companies to circumvent this by asking sponsors to provide prize money and prizes.
The task will also seek to “clarify the regulatory environment” for NFT operators and sports teams.
The team will also support the establishment of an “industry group” for companies using NFT.
It will further request that the public and private sectors “collaborate to formulate guidelines.”
The Web3 team works together with a dedicated NFT working group, which was launched in 2022.
About a year ago, the team recommended Tokyo appoint a Web3 government minister.
Prime Minister Fumio Kishida has repeatedly talked up the idea of developing the country’s blockchain, metaverse, NFT and even crypto industries.
He underlined the nation’s commitment to Web3-driven business development at a meeting of UK-based investors last year.
