Japanese Blockchain Gaming Report – 2022

by Arthur · October 14, 2022

Your comprehensive all in one guide to the crypto world in the land of the rising sun.

Cryptocurrencies and the topic of web3 technology have managed to plaster themselves on all corners of the world in the last 24 months. Mainstream success has been somewhat given 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 has really embraced the idea of crypto, blockchain, web3, whatever term you want to use to describe this recent phenomenon.

We see brands like Starbucks enhancing their customer experience through the integration of these technologies. Games are now starting to show real value through games to achieve integration, stimulating long-term usership.

In this report, the Japanese Web3 industry will be removed. 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, Japan’s adoption of the new age of technology is definitely interesting to say the least.

Table of Contents

Japan’s background with the blockchain

Crypto is available in Japan, unlike in many other neighboring Asian countries where the digital currency is not so accepted.

Since 2016, Japan and their government have been doing it officially made cryptocurrencies legal tender. Some western countries chose to adapt a little further in the future.

2021 was a big year for Japan and the blockchain. Despite the strict legislation that we cover more below, the Japanese investors and traders amassed a total of $1 trillion of traded crypto in that year.

At the time of writing, large amounts of crypto are being traded with a growing gaming industry as we see more and more big brands joining.

Although it is legal, there are not that many exchanges in Japan compared to the rest of the world. Coinbase is their most notable, but it is heavily regulated by one of Japan’s largest banks, MUFG.

While crypto is accepted in Japan, game tokens are not that widely available. Currently, there are only 2 gaming related cryptocurrencies available in the market. They are:

Engine token ($ENj) from the Enjin blockchain
DEAPcoin ($DEAP) from Digital Entertainment Asset
Cryptocurrencies – how they are regulated in Japan

It comes as no surprise that crypto is heavily regulated in Japan. With its growth, many digital assets have been able to reach mainstream coverage. With how early the Japanese government accepted crypto as a legitimate currency, this necessitated 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 have to pay 55% income tax on your earnings. Despite being a decentralized resource, there is still some form of regulation carried out by the authorities.

In the UK, crypto earners will pay capital gains tax on crypto after £12,300, which varies between 10-20%. US law is slightly different, if you haven’t owned an asset for a year and you sell, the tax is determined by the federal income tax bracket. The percentage paid from the earnings can vary from 10% -37%. This generally makes Japan’s law on income related to crypto quite strict.

Web3 companies originating from Japan

Many pioneering companies orchestrating the new approach to entertainment and gaming reside in Japan. By gaining large amounts of social media and corporate recognition, many investors are flocking to them to get a piece of the blockchain pie.

While many of the companies we cover are Japanese at heart, the strict crypto asset law in Japan means many brands are heading to places like Singapore. Having offices and responsible assets in these areas of Asia means less stringent regulation.

Oasis

Oasis is one of the top Japanese blockchain companies. A self-proclaimed “public blockchain” that specializes in creating blockchain games. They release many projects with some of the companies we will mention further down in this article.

With how expensive gas fees are among different cryptocurrencies, Oasys hopes to eliminate them and make this niche more accessible.

Double Jump Tokyo

“Re-building the future of gaming with blockchain technology!” is the ethos of DoubleJump Tokyo.

They specialize in blockchain game development and are also in the business of creating NFTs for gaming related companies. Their extensive knowledge of the games and entertainment industry allows them to work with big names.

Digital entertainment resource

NFTs, cryptogaming and cryptotokens are at the forefront of the DEA. At the time of writing, they have several platforms that users can use to enhance their web3 experience. Their “PlayMining” range of services allows users to shop and earn from their favorite collectibles, manga and games.

With their DEAPcoin, the DEA ecosystem is alive and thriving as players spend 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 accounts for 13% of the entire gaming industry worldwide. It comes as second nature to people in Japan to understand the advancements that blockchain games are showing from these homegrown companies.

Examples of Japanese game companies using Web3

2022 has seen many of Japan’s leading gaming companies make the transition to play-to-earn and blockchain as they create both old and new franchises.

This positive response is a great way for new users to gain exposure, as many mainstream news reports covering general crypto headlines can be considered quite negative. Potentially designed to deter new users from investing time and capital in these digital projects.

Square Enix

Known for their Final Fantasy series, Square Enix recently made headlines for announcing their latest upcoming collaboration with Oasys.

Expect a new twist on cryptogaming as their eco-friendly approach to technology will be implemented into the Square Enix games we know and love!

Capcom

Capcom has been in the crypto realm for well over a year now. WAX is partnering with the upcoming blockchain and launching a Street Fighter 2 themed NFT card game collection.

The highs for the NFT sale reached the unfathomable 4-digit range, $7,355 (75k WAX).

Many NFT collections are becoming dormant, but trading is still active as we speak. Thanks to Street Fighter’s worldwide popularity and acceptance among the esports community.

My wife

Paying further homage to much-loved classic gaming titles, Konami hasn’t shied away from the NFT craze either.

Releasing a commemorative collection for the 35th anniversary of their infamous game Castlevania. These NFTs featured gameplay and artwork from a number of titles from the Castlevania game series.

SEGA

Our latest notable mention comes from ’90s gaming powerhouse SEGA, the company responsible for Sonic The Hedgehog et al.

They recently announced a new crypto game title in collaboration with DoubleJump Tokyo which 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 come from Japan, showcasing the blockchain technologies we know and love.

We ask that you not be fooled by the presentation of these games, as although they may seem fun and quirky, there is a level of knowledge needed to engage with these games properly and to their full potential. Always do your own further research and due diligence before committing your own capital and time to these games.

My crypto heroes

If you’re a fan of traditional RPG games, this title might be for you. My Crypto Heroes can be customized with crypto wizardry an RPG fighting game built on the popular Ethereum blockchain.

Gameplay isn’t anything crazy, but the 8-bit presentation is sure to be a blast from the past for all kinds of gamers. It has multiple game modes that make the gameplay less stale than it could potentially have been. Recorded in 2019 by DappRadar, My Crypto Hero was the most popular blockchain game by the amount of active users engaged in the game.

Dungeon Siege (Square Enix) joins The Sandbox

The sandbox has become one of the most recognizable metaverse experiences through their endless list of collaborations with famous names and brands. It comes as no surprise that Square Enix will release its own in-game experience.

Dungeon Siege was an action-packed RPG-style game that became popular among console gamers via the Xbox and PlayStation series of hardware. This new adoption is sure to be action-packed as The Sandbox is notorious for releasing NFT collections that have been adopted from the experiences released in-game.

Polka Fantasy

While also a game, Polka Fantasy is also a cross-chain marketplace for those who love anime-themed game-related NFTs. It is also the first of its kind!

Overall, the presentation and feel of this title is second to none as it is a self-proclaimed triple A gaming experience via their official website.

Crypto sorcery

This is a trading card game built on the blockchain. This is a highly accessible game that can be played on most mobile devices. The art style is fun and vibrant, a similar approach many anime use in their animations. NFTs owned in this title can also be used in My Crypto Heroes, leveraging their usage further.

Players earn NFTs and the in-game currency by battling other players and completing in-game challenges. NFTs for crypto sorcery are widely available on the popular NFT marketplace, OpenSea.io. The development team has also released a TV to commemorate the game, pretty cool!

The above games are by no means the best, as it is entirely up to debate through personal experience and taste. However, their website and social media showed a great community that actively engages with the content and the game. Be sure to check them out and more to see which one suits you best!

What can we expect to come out of Japan when looking at crypto-related games?

Well, if the western notions of cryptogaming are anything to go by and what has been achieved up to this point, then it could be an unlimited list of possibilities when looking at Japan and their past track record of game releases.

In Japan, people of all ages and walks of life engage in the collecting culture that has swept the nation for decades now. Be it physical or digital, the Japanese enjoy ownership of their favorite brands, characters, etc. This is great when you consider the potential growth crypto games can have in the country, eventually catapulting their success to the rest of the world.

The good thing about Japan is theirs extremely early adoption of crypto, which means that many people in this area of the world are already somewhat familiar with the technologies. Match that with the huge gaming scene and the general reception to new projects will be huge!

As for the gaming and blockchain companies out there, fans all over the world will be eagerly waiting for ideas. With how revolutionized regular gaming has been thanks to the Japanese development teams, it will be no surprise that the crypto game releases in the near future will be just as groundbreaking!

Be sure to keep your eyes open in the near future as the brands above will start releasing their new updates and teasers. And as always, be sure to stay tuned with our news updates as we go over all the new updates coming from the blockchain gaming world.

Good luck with the game!