The Japan Cryptocurrency Business Association (JCBA) recently announced the release of a draft guideline regarding the application and utilization of Real World Asset (RWA) tokens, and has started a broad solicitation of opinions. This initiative is part of the Ministry of Economy, Trade and Industry's project on 'Utilizing Web 3.0 and Blockchain Technology to Construct Digital Public Goods and Other Verification Plans.' The following will introduce the outline of the guideline and the details of the opinion solicitation.
Background and challenges of RWA token application in Japan
Web 3.0 and blockchain technology are attracting attention as innovative technologies with great potential for the future, but currently face several significant challenges, including:
Private enterprises find it difficult to clearly see specific value
Lack of economic rationality in constructing highly public infrastructure
Legal regulations are complex and many areas are unclear
Due to these challenges, the practice and popularization of related technologies in society have progressed limitedly. To address these issues, the Japan Cryptocurrency Business Association is working to promote the development of businesses based on RWA tokens by combining expert opinions.
Main content and objectives of the Japan RWA guidelines
This draft guideline mainly targets companies that wish to engage in or consider RWA business, with the goal of constructing a market for the issuance and circulation of digital assets, including the following points:
1. Organization of the conditions for token transfer
For tokens transferred on the blockchain, organizing the relevant conditions deemed to correspond to the transfer of real assets, including legal issues related to third-party opposition conditions in civil law.
2. Organization of creditor-debtor relationships
Organizing the creditor-debtor relationships related to tokens and providing templates for usage terms to facilitate smooth accounting audits.
3. Identification of medium- to long-term challenges
Sorting out institutional issues including ownership of intangible assets and proposing solutions from a medium- to long-term perspective.
The draft of this guideline was officially published on November 29, 2024, and the public consultation was initiated, with a deadline of December 19, 2024.
The formulation of this guideline is an important step in broadly applying Web 3.0 and blockchain technology to 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.
This article on the release of the Japan Real World Asset Token (RWA) guideline draft, with the public consultation completed, first appeared on Chain News ABMedia.