Your comprehensive all in one guide to the world of crypto in the land of the rising sun.
Cryptocurrencies and the topic of web3 technology has managed to plaster itself on all corners of the globe over the past 24 months. Mainstream success has been somewhat granted to the crypto industry on both positive and negative ends of the spectrum as we have seen large amounts and winners and also losers in the spotlight.
The West have really taken on the idea of crypto, blockchain, web3 whichever term you want to use to describe this recent phenomena.
We are seeing brands such as Starbucks, gamify their customer experience through the integration of these technologies. Games are now starting to display real world value through play to earn integration, incentivising long term-term usership.
In this report, the Japanese Web3 industry will be unpicked. Looking into the industry leading brands and titles coming out of Japan and crypto as an industry is received in that part of the world.
As one of the early birthplaces of the original gaming experience and now into the modern era, the Japanese adoption of the new technology age is definitely interesting to say the least.
© Mmoexaminer
Japan’s background with the blockchain
Crypto is available in Japan, unlike in many other neighbouring Asian countries where the digital currency is not so accepted.
Since 2016, Japan and their government have officially made cryptocurrencies legal tender. Something western countries chose to adapt a little longer down the line.
2021 was a huge year for Japan and the blockchain. Despite the strict legislation which we cover more below, the Japanese investors and traders tallied a total of $1 trillion worth of traded crypto in that year.
At the time of writing there are large amounts of crypto being traded with a growing gaming industry as we see more and more big time brands joining in.
Whilst being legal, there are not as many exchanges within Japan as compared to the rest of the world. Coinbase is their most notable, however it is heavily regulated by one of Japan’s biggest banks, MUFG.
Whilst crypto is accepted within Japan, gaming tokens are not so widely available. Currently there are only 2 cryptocurrencies related to gaming that are available on the market. They are:
- Enjin token ($ENj) from the Enjin blockchain
- DEAPcoin ($DEAP) from Digital Entertainment Asset
- Cryptocurrencies – how they are regulated within Japan
It comes as no surprise that crypto is heavily regulated within Japan. With the growth many digital assets have been able to reach mainstream coverage. With how early on the Japanese government accepted crypto as a legitimate currency this followed the need for the introduction of new newfound legislation over the asset class.
Taxes related to crypto in Japan
Those who hold cryptocurrencies and earn an income over $335, 000 in Japan, you must pay a 55% income tax on your earnings. Despite being a decentralised asset there is still some form of regulation being carried out by authorities.
In the UK, crypto earners will pay capital gains tax on crypto after £12, 300, ranging between 10-20%. The USA’s legislation is slightly different, if you have not owned an asset for a year and you sell, the tax is decided by the Federal Income Tax bracket. The percentage paid from the earnings can range from 10%-37%. This generally makes Japan’s law on income related to crypto quite strict.
Web3 companies originating from Japan
Many groundbreaking companies orchestrating the new approach to entertainment and gaming are residing within Japan. Through gaining large amounts of social media and corporate recognition, many investors are flocking to them to have a piece of the blockchain pie.
Whilst many of the companies we are covering are Japanese at heart, the strict legislation over crypto assets in Japan means many brands are going to places such as Singapore. Having offices and liable assets in these areas of Asia means less strict regulation.
© Oasys
Oasys
Oasys are one of the top Japanese companies within the blockchain. A self proclaimed “public blockchain” that specialises in the creation of blockchain games. They are releasing many projects with some of the companies we are going to mention further down this article.
With how costly gas fees are amongst different cryptocurrencies, Oasys hopes to eliminate them making this niche more accessible.
DoubleJump Tokyo
“Re-building the future of gaming with blockchain technology!” is the ethos of DoubleJump Tokyo.
They specialise in blockchain game development and also dabble in the creation of NFTs for gaming related companies. Their extensive knowledge on the gaming and entertainment industry allows them to work with large cap names.
Digital Entertainment Asset
NFTs, crypto gaming and crypto tokens are at the forefront of DEA. At the time of writing they have multiple platforms that users can use to enhance their web3 experience. Their “PlayMining” range of services allow users to trade and earn on their favourite collectibles, Mangas and games.
With their DEAPcoin the DEA eco-system is alive and thriving as players use and earn the token.
They also have a number of eccentric titles such as “Trading Card Battle Game “JobTribe” and “Fujiwara Kamui Verse ~Antiqua Reincarnation~”.
The Japanese gaming industry makes up 13% of the whole gaming industry worldwide. It comes as second nature for people within Japan to understand the advancements blockchain gaming is showing from these homegrown companies.
Examples of Japanese gaming companies using Web3
2022 has seen many of Japan’s leading gaming companies make the transition to play to earn and blockchain when creating both old and new series.
This positive response is a great way for new users to be exposed as many mainstream news reports covering general crypto headlines can be deemed as quite negative. Potentially created to deter new users from investing their time and capital into these digital projects.
© Square Enix / Oasys
Square Enix
Famous for their Final Fantasy series, Square Enix have recently made the headlines for announcing their recent upcoming collaboration with Oasys.
Expect a new twist on crypto gaming as their eco-friendly approach to technology will be implemented into the Square Enix games we know and love!
Capcom
Capcom have been in the crypto realm for well over a year now. Collaborating with the up and coming blockchain, WAX to release a Street Fighter 2 themed NFT trading card game collection.
Highs for the NFT sales reached the unimaginable 4 figure range, $7, 355 (75k WAX).
Many NFT collections become dormant, however trading is still active as we speak. Thank Street Fighter’s worldwide popularity and acceptance amongst the esports communities.
Konami
Paying further homage to much loved classic gaming titles, Konami have not shied away from the NFT craze either.
Releasing a memorial collection for the 35th anniversary of their infamous game Castlevania. These NFTs featured gameplay and artwork from an array of titles from the Castlevania game series.
SEGA
Our last notable mention comes from the 90s gaming powerhouse SEGA, the company responsible for Sonic The Hedgehog et al.
They have recently announced a new crypto gaming title teaming up with DoubleJump Tokyo who we covered further up. Be sure to find out more about this new title!
Popular crypto games in Japan
Below are some notable games that have resided from Japan, displaying the blockchain technologies we know and love.
We ask to not be fooled by the presentation of these games, as while they may seem fun and quirky there is a level of knowledge needed to engage with these games properly and to their full capacity. Always do your own further research and due diligence before committing your own capital and time to these games.
My Crypto Heroes
If you are a fan of traditional RPG games then this title could be for you. Adaptable with Crypto Spells, My Crypto Heroes is an RPG battle game built on the popular Ethereum blockchain.
Gameplay is nothing crazy however the 8bit presentation will sure be a blast from the past for all sorts of gamers. It has multiple game modes making the gameplay less stale than it potentially could have been. Recorded in 2019 by DappRadar, My Crypto Hero was the most popular blockchain game by the amount of active users engaging with the game.
Japan
Dungeon Siege (Square Enix) joining The Sandbox
The Sandbox has become one of the most recognisable metaverse experiences through their never ending list of collaborations with household names and brands. It comes as no surprise that Square Enix are due to release their own experience within the game.
Dungeon Siege was an action packed RPG style game that rose to fame with console gamers via the Xbox and PlayStation series of hardware. This new adoption will sure be action packed as The Sandbox is notorious for releasing NFT collections that have been adopted from the experiences released in the game.
Polka Fantasy
Whilst also being a game, Polka Fantasy is also a cross chain marketplace for those who love anime themed game related NFTs. It’s also the first of its kind!
Overall the presentation and feel to this title is unmatched as it is a self proclaimed triple A game experience via their official website.
Crypto Spells
This is a trading card game built on the blockchain. This is a high accessible game that can be played on most mobile devices. The art style is fun and vibrant, a similar approach many anime’s take in their animations. NFTs owned in this title can also be used within My Crypto Heroes also, further utilising their usecase.
Players earn NFTs and the in-game currency through battling other players and completing in-game challenges. NFTs for Crypto Spells are widely available on the popular NFT marketplace, OpenSea.io. The development team has also released a T.V to commemorate the game, pretty cool!
The above games are by no means the best, as that is entirely up for debate through personal experience and taste. However, their websites and social media showed a great community that is actively engaging with the content and game. Be sure to check them out and more to see which one takes your fancy the most!
What can we expect to come out of Japan when looking at crypto related games?
Well, if the western notions of crypto gaming are anything to go off and what has been achieved up until this point, then it could be a limitless list of possibilities when looking at Japan and their previous track record of gaming releases.
Within Japan, people of different ages and walks of life engage with the collector culture that has sweeped the nation for many decades now. Whether it be physical or digital, the Japanese enjoy the ownership of their favourite brands, characters etc. This is great when considering the potential growth crypto games can have in the country, ultimately catapulting their success to the rest of the world.
What’s good about Japan is their extremely early acceptance of crypto, making many people in this area of the world already somewhat familiar with the technologies. Match that with the huge gaming scene and the overall reception to new projects will be huge!
As for the gaming companies and blockchain companies out there, there ideas will be eagerly waited for by fans all over the world. With how revolutionised normal gaming has become thanks to the Japanese development teams it will come to no surprise that the crypto gaming releases in the near future will be just as groundbreaking!
Be sure to keep your eyes peeled in the near future as the above brands will start releasing their new updates and teasers. And as always be sure to keep up to date with our news updates as we go over all the new updates coming from the world of blockchain gaming.
Happy gaming!
