Japan’s Hostility To Crypto Could Halt Its Dominance In Global Gaming

Japan’s hostility to cryptocurrency gaming is hurting the country’s stronghold as a global force in gaming. The country’s strict policies on taxation and regulation have continued to discourage stakeholders in the blockchain gaming space.

Japan’s Strict Crypto Regulation Could Affect Its Gaming Dominance

It’s not clear where Japan’s antagonism to cryptocurrency began or why it’s still lingering even after the cryptocurrency boom in 2021. This period saw an overwhelming level of interest in cryptocurrencies, as mainstream companies started embracing the industry. Governments are now setting up policies that will provide a better regulatory environment for digital assets. But Japan remains hostile to crypto opportunities.

As home to gaming giants like Sega and Nintendo, Japan has been a gaming force for decades, with notable projects like Sonic the Hedgehog, the Game Boy, Sega Mega Drive, and Super Mario. But it seems the government has not made strong efforts to change with the times.

Gaming is one of the highest beneficiaries of blockchain technology. With the current revolution in blockchain and cryptocurrencies, the gaming industry is set to hit new heights. Many Japanese companies are not showing the desired interest in blockchain and cryptocurrencies. For example, as an integral part of the industry, GameFi has lacked serious interest from Japanese companies.  With the increased level of growth happening in the GameFi sector across other regions, Japan risks losing its relevance in the world of games.

Japan To Loosen Its Strong Grip On Coin Listing

Japan is holding the boom of the crypto and tech worlds in the region with a complicated screening process and heavy taxation.

In Japan, auditors are running away from auditing cryptocurrency assets and there is no ground to account for these assets properly. The Financial Agency has also set up strict listing rules, which makes the process of listing a coin in the country very frustrating. It takes a long time for a token to be screened, making it highly discouraging in an industry where timing is very important.

However, it seems the government is beginning to see the need to loosen its cryptocurrency rules. Japan’s regulatory body is planning to allow entities to list coins without going through the normal rigorous process. However, those tokens new to Japan’s market will pass a more comprehensive check before they are allowed.