How Japan is illuminating the path of blockchain’s future: Opinion
Daiki Moriyama
4 min read
Japan, renowned for its technological finesse and gaming heritage, was once an unrivaled leader in the global technology arena. However, in recent years, it has grappled with the ascendance of Silicon Valley and China. Despite this, the advent of blockchain gaming — a dynamic sector that reinvents the gaming experience by fostering immersive, player-driven economies — has revealed a new horizon. With its rich gaming legacy and ingrained tech culture, Japan is uniquely positioned to seize this opportunity as the global blockchain gaming market nears explosive growth.
Japan’s burgeoning Web3 market shines as a beacon of hope. A recent report from AT Kearney Japan underscores that the country’s Web3 market is outpacing the global average, propelled by a powerful blend of gaming content and intellectual property-related businesses. This combination is driving a marked shift towards blockchain gaming that has caught international attention. Numerous projects now recognize the importance of the Japanese market and are strengthening their presence by recruiting talent for business development. This proactive approach from the global blockchain community validates Japan’s potential, heralding its imminent ascension as a pivotal hub in the international blockchain gaming sphere.
Japan’s blockchain ascendancy
The bedrock of Japan’s impending dominance in the blockchain gaming arena rests on four integral pillars — its unique cultural ethos, a forward-thinking government, creative game developers, and the rapid evolution of a robust blockchain gaming ecosystem.
Japan’s cultural landscape, steeped in games like Tamagotchi and Pokemon that center around character-nurturing, aligns perfectly with the principles of blockchain gaming. These games, deeply ingrained in the Japanese psyche, have cultivated a natural affinity with blockchain games, emphasizing the enhancement of non-fungible tokens (NFTs) through gameplay.
The distinctly Japanese practice of “poikatsu,” which promotes points accumulation from daily activities, parallels the “play-to-earn” concept in blockchain games, fostering a shared cultural-economic narrative. This alignment is epitomized by the app Stepn, which has a large user base in Japan, leading to partnerships with notable Japanese corporations like ASICS. Combined with the presence of globally recognized Japanese pop culture elements, this creates an environment ripe for the proliferation and widespread acceptance of blockchain gaming.
In the ever-evolving technology landscape, Japan stands as a pioneer with its well-established rules and regulations, providing a clear path for companies venturing into the Web3 business. The government’s proactive policies, including crypto-friendly taxation laws and simplified regulatory frameworks, are the hallmarks of this progress. These initiatives, signaling that “clear rules are better,” are enticing more traditional companies to transition into the crypto space.
Japan’s robust regulatory system came into the spotlight following the collapse of FTX when the cryptocurrency exchange giant’s Japanese unit was the only one to reimburse its clients. These protective measures not only safeguarded investors but also set a strong foundation for the proliferation of blockchain technologies in Japan. The ruling Liberal Democratic Party’s proactive stance and METI’s decision to sponsor Japan Blockchain Week, which is currently under way, reflect the country’s commitment to fostering a thriving blockchain ecosystem.
While many nations grapple with establishing fundamental regulations for blockchain technologies, Japan has already vaulted into a more advanced phase of regulatory development, setting it apart from countries like the United States. Its clear and precise regulatory frameworks for blockchain gaming offer a blueprint for what game companies can and cannot do, instilling confidence in businesses to embrace and expand into this dynamic space.
Japan’s regulators are not only revisiting but also redefining existing rules, creating an ecosystem conducive to blockchain businesses by delivering transparent tax and accounting guidelines, exercising stringent control over licensed crypto-asset activities, and ensuring swift resolution of regulatory ambiguities through a dedicated desk. Through these initiatives, Japan is fortifying its position as a key player in the blockchain sector, demonstrating how a progressive, well-regulated environment can be the driving force behind innovation and growth in this cutting-edge field.
Japanese game developers, integral to the nation’s gaming industry, are leading the blockchain gaming revolution. Industry titans, leveraging globally recognized IPs, are reinvigorating gameplay and launching blockchain games. Intriguingly, gaming behemoths have begun participating as node validators on various blockchains, acquiring crucial insights into different aspects of blockchain technology like accounting, legal and tax perspectives. This holistic approach equips them adequately for business expansion in the Web3 arena, including potential issuance of their own tokens.
Japan’s blockchain ecosystem is substantially rooted in activities spearheaded by the private sector, particularly in emerging sectors like blockchain gaming. Correspondingly, the country’s blockchain gaming ecosystem is evolving at a remarkable pace. Major industry players are pivoting their focus toward gaming tokens and enabling NFT purchases. Telecommunication titans are also aggressively pushing forward their various Web3 initiatives, echoing their belief in the transformative power of this technology.
Dawn of a new gaming era
With its distinctive cultural compatibility, robust pool of game developers, progressive government policies and vibrant gaming ecosystem, Japan is optimally positioned to spearhead the blockchain gaming revolution. This favorable backdrop fosters innovation, paving the way for globally impactful breakthroughs. As we enter this transformative era, Japan’s role transcends mere participation — it is authoring a new chapter in gaming history. Poised to make an indelible mark, Japan leads a future of blockchain gaming filled with boundless potential and opportunities.
