Draft guidelines for Real World Asset (RWA) tokens in Japan released, completion of public consultation.
The Japan Cryptocurrency Business Association (JCBA), a general incorporated association, recently announced the release of a draft guideline for the application and utilization of Real World Assets (RWA) tokens, and has begun soliciting feedback widely. This initiative is part of the Ministry of Economy, Trade and Industry’s “Verification project for constructing digital public goods using Web3.0 and blockchain technology.” The following will introduce the overview of the guideline and the detailed content of the feedback solicitation.
Background and Challenges of RWA Token Application in Japan
Web3.0 and blockchain technology are attracting significant attention as innovative technologies with huge future potential, but they are currently facing several major challenges, including:
– Difficulty for private companies to clearly see the specific value
– Lack of economic viability in building highly public infrastructure
– Complexity and ambiguity in legal regulations
Due to these challenges, the progress and popularization of related technologies in society are limited. To address these issues, the Japan Cryptocurrency Business Association is combining expert opinions to promote business development based on RWA tokens.
Main Content and Objectives of the Japan RWA Guideline
This draft guideline primarily targets enterprises that are interested in or considering engaging in RWA business, with the goal of building a market for the issuance and circulation of digital assets. The content includes the following points:
1. Organization of conditions for token transfers
Organizing the conditions related to token transfers on the blockchain as corresponding to transfers of real-world assets, including legal issues such as third-party opposition conditions in civil law.
2. Organization of creditor-debtor relationships
Organizing creditor-debtor relationships related to tokens and providing template terms of use to facilitate accounting audits.
3. Identification of medium to long-term issues
Sorting out institutional issues including intangible asset ownership and proposing solutions from a medium to long-term perspective.
The draft guideline was officially announced on November 29, 2024, and feedback collection was initiated with a deadline of December 19, 2024. The formulation of this guideline is an important step towards the widespread application of Web3.0 and blockchain technology in real society, and through revitalizing the circulation market of digital assets and promoting the practical use of RWA tokens, it is expected to create new social value.
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