Japan hints at blockchain gambling objection

Japan’s financial watchdog, the Financial Services Agency (FSA), has hinted at its disapproval of blockchain-based gambling apps.

A report conducted by Xangle Research found that the FSA was more inclined to rubberstamp the approval of new cryptocurrencies should they not own, or be involved with, gambling or casino dapps (decentralised apps).

Xangle’s report highlighted the Qtum token, which gained access to Japan’s cryptocurrency exchange service Coincheck, after passing regulatory checks as one centred around gambling.

Alongside transparency measures and liquidity checks, the FSA highlighted the need for the absence of a relationship between the coin and gambling.

“No gambling dapps: they must provide the public announcement that they do not support such dapps.” was cited as a “main concern” of the FSA when deliberating the approval of new cryptocurrencies into its regulated market.

The report also featured an interview with a Qtum spokesperson who said Japan’s requirements are some of the most stringent in the world.

“Japanese listing regulation is one of the most rigorous requirements among the world. [These] new listings only shows that Japanese regulators are openminded about cryptocurrency but also still very strict with the listing rules to protect the investors,” the spokesperson commented.

While there are no draconian measures in place regarding blockchain gambling in the Asian nation, these murmurs from the FSA may make for uncomfortable reading for the crypto vertical.