Rise Of NFT In Japan And Potential Regulation On NFT

Introduction

"NFTs", or Non-Fungible Tokens, is a term that is not generally defined under Japanese law, but is generally understood to mean tokens minted on a blockchain that are irreplaceable. Because NFTs are digital data generated on a blockchain, but have the characteristic of being irreplaceable through the unique values assigned to them, their usage is increasing in various areas. For example, there are games in which in-game items are transferable on blockchain (hereinafter referred to as "Blockchain Games"). In Blockchain Games, unlike conventional games, users can own and manage their own unique in-game items and characters as NFTs. These NFTs can be freely transferred and sold on blockchain, even outside the game. In August 2020, Coincheck, a major crypto asset exchange service provider ("CAESP") in Japan, announced the launch of an NFT marketplace, and businesses using NFTs have been attracting increasing attention recently. The size of the NFT market