The Japan Crypto Asset Business Association (JCBA) recently announced the release of a draft guideline regarding the application and utilization of Real World Asset (RWA) tokens, and has begun a broad solicitation for opinions. This initiative is part of the Ministry of Economy, Trade and Industry’s “Verification Project for Utilizing Web 3.0 and Blockchain Technology to Construct Digital Public Goods.” Below is an overview of the guideline and details of the opinion solicitation.
**Background and Challenges of RWA Token Application in Japan**
Web 3.0 and blockchain technology, as innovative technologies with significant potential for the future, are attracting considerable attention. However, they currently face several major challenges, including:
– Difficulty for private enterprises to clearly see specific value
– Lack of economic rationality in constructing highly public infrastructure
– Complex and unclear legal regulations
Due to these challenges, the practical application and popularization of related technologies in society have made limited progress. To address these issues, the Japan Crypto Asset Business Association is working to promote the business development based on RWA tokens by incorporating expert opinions.
**Main Content and Objectives of the Japan RWA Guidelines**
This draft guideline primarily targets companies that wish to engage in or are considering RWA business, aiming to construct a market for the issuance and circulation of digital assets. The content includes the following points:
1. **Organization of Token Transfer Conditions**
– For tokens transferred on the blockchain, the relevant conditions that correspond to the transfer of real-world assets are organized, including legal issues related to third-party opposition conditions in civil law.
2. **Organization of Creditor-Debtor Relationships**
– The creditor-debtor relationships related to tokens are organized, and to facilitate smooth accounting audits, usage terms templates are provided.
3. **Identification of Medium- to Long-Term Issues**
– Institutional issues, including ownership of intangible assets, are sorted out, and countermeasures are proposed from a medium- to long-term perspective.
The draft guideline will be officially published on November 29, 2024, and the opinion solicitation will commence, with a deadline of December 19, 2024.
The formulation of this guideline is an important step towards the widespread application of Web 3.0 and blockchain technology in real society. By revitalizing the digital asset circulation market and promoting the practical use of RWA tokens, it is expected to create new social value.
**Risk Warning**
Investing in cryptocurrencies carries a high level of risk, and their prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please assess the risks carefully.