<aside> 💡 This document is the specification for individual theme 1). For information on requirements and application procedures common to all themes, please refer to the Application Guidelines for all themes.

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１．Recruitment theme

１－１．Background and purpose of the recruitment theme

Distributed ledger technologies including blockchain technology are "technologies that correctly record information," and the technological foundations are being prepared for the social infrastructure of capitalism to be built in the digital world through technological development (register = blockchain, currency = crypto-assets, market economy = decentralized exchange, etc.). Therefore, it has been pointed out that blockchain technology has the potential to advance capitalism in the digital world.
Moreover, the Boston Consulting Group expects that the market for digital assets (RWA tokens) that represent rights to physical assets that have value in real world economic activity and other rights will reach a value of 4 trillion to 16 trillion US dollars by 2030, and the Managing Director of the Monetary Authority of Singapore referenced that potential in a speech titled, "Yes to Digital Asset Innovation, No to Cryptocurrency Speculation."
On the other hand, while a certain degree of progress has been made in the financial field in building markets (platforms) for digitizing, issuing, and, distributing physical and intangible assets in Japan, the majority of efforts in other fields involve operating companies, etc. issuing experimental NFTs, and the current situation is that no attempt has been made to build markets for issuing and distributing physical and intangible assets that would truly help develop the Japanese economy and industry (For instance, the construction of a platform that enables the overseas expansion of Cool Japan-related products, content, experiences, and services at fair global prices).
This is due to the fact that it is difficult for companies, etc. that are driven by "real profit" to see the value, questions and concerns such as "will we really make money (how do we make money)?" "isn't it speculative and damaging to the value of existing products?" and "what new value can we expect (why are existing technologies insufficient)?" have not been dispelled, and large-scale "success cases" have not yet emerged.
In addition, systemic issues and points of contention also exist as barriers to large-scale commercialization by companies. For example, various systemic issues and points of contention for stimulating the utilization of digital assets exist in Japan such as the practical organization of debt and credit relationships for various digital assets (including the smooth implementation of accounting audits based on such relationships), the organization of requirements for considering the transfer of tokens on blockchain technology as an asset transfer (including the problem of third-party perfection requirements under the Civil Code), as well as the current system which does not allow for the ownership of intangible objects including digital assets, etc.
Therefore, regarding the building of digitization markets (issuing and distribution markets) for physical and intangible assets, social and business values (including the presentation of quantitative figures) will be organized, guidelines for business operators (problem of third-party perfection requirements of the Civil Code, etc.) will be developed and expanded, terms of service templates for digital assets to streamline accounting audits will be created, and institutional issues that should be addressed over the medium- to long-term will be identified, etc. while supporting pilot projects undertaken by the private sector.

１－２．Related past initiatives and remaining issues

Regarding the problem of third-party perfection requirements under the Civil Code, the Act on Strengthening Industrial Competitiveness includes special provisions for the assignment of a claim. Business operators that have applied for and qualified for the New Business Special Exemption System can fulfill the third-party perfection requirements. On the other hand, previous applications and qualifications were finance-related (security tokens) and involved only private/consortium chains.
The Japan Cryptoasset Business Association (JCBA) published the “Primary Regulatory Considerations for Issuing RWA Tokens” in April 2024. Meanwhile, other legal, accounting, and taxation issues, such as dealing with requirements of perfection when transferring underlying assets and how to handle the situation when underlying assets have trademark rights or copyrights, are not covered.

<aside> 💡 This theme is divided into the following two sub themes to solicit pilot projects for each.

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１．Recruitment theme

１－１．Background and purpose of the recruitment theme

１－２．Related past initiatives and remaining issues

【Sub theme 1-1: Guideline creation】