The Japanese government is looking to promote the adoption of non-fungible tokens (NFTs) in the sports sector. According to a report by the local newspaper Nikkei, the government is expected to release a white paper on the subject presented by the “Promotion of the digital society” working group of the Liberal Democratic Party in Tokyo.
The white paper aims to provide clarity on the regulatory framework for companies issuing NFTs and their potential sports partners. It is also expected to recommend ways for companies to work around Japan’s strict anti-gambling laws, which currently limit the most profitable businesses that involve raising capital from clients.
Sports like baseball and soccer have a massive following in Japan, and the working group dedicated to Web3 has identified “fantasport” as “gaining popularity abroad.” The team wants to encourage domestic companies to enter the sector by using NFT technology, which could undoubtedly enjoy great popularity among Japanese fantasy league enthusiasts.
However, the strict anti-gambling laws could pose a hindrance to the success of NFT-based fantasy sports operators in Japan. To address this issue, the white paper may recommend that companies work around the laws by asking sponsors to provide prizes and money.
The working group also plans to support the creation of an ‘industry group’ for companies using NFTs and requests that the public and private sectors work together to formulate guidelines. The dedicated Web3 team works alongside a task force focused on NFTs that was launched in 2022. About a year ago, the working group recommended Tokyo to establish a dedicated Web3 ministry.
Prime Minister Fumio Kishida has repeatedly talked about the idea of supporting the development of the blockchain, metaverse, NFT, and even cryptocurrency industries. His commitment to developing web-based businesses indicates that Japan is ready to pioneer the use of NFTs in the sports sector and create a game-changer for fantasy leagues.
Conclusion
The adoption of NFTs in the sports sector is a promising development for the Web3 industry in Japan. The white paper’s release is eagerly awaited by the public, and it is hoped that it will provide a clear regulatory framework and innovative solutions to overcome the limitations posed by the strict anti–gambling laws. With the government’s support, the use of NFTs in sports has the potential to transform the industry and create exciting opportunities for sports enthusiasts in Japan.
