The Japanese government may consider adopting non-fungible tokens (NFTs) in the sports industry, with the ruling Liberal Democratic Party Web3 "Digital Society Promotion" team set to publish a white paper on the matter. The paper will seek to clarify the regulatory picture for NFT-issuing firms and their potential sporting partners, with a focus on encouraging domestic companies to enter the sector. However, Japan's strict anti-gambling laws could pose a problem for fantasy sports operators who make use of NFTs, as some require participants to pay entry fees. The white paper is likely to recommend that companies get around this by asking sponsors to provide prize money and prizes. The Web3 team works alongside a dedicated NFT taskforce, which was launched in 2022, and will support the establishment of an industry group for firms that make use of NFTs.

(By Tim Alper)