This FAQ explains Non-Fungible Tokens (NFTs) from a Japanese perspective, covering basics, use cases, and legal considerations as of 2026.

What is an NFT?

An NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that represents ownership of a specific item or content.

Unlike cryptocurrencies such as Bitcoin, which are fungible and interchangeable, each NFT has distinct information that makes it one-of-a-kind. This uniqueness allows NFTs to represent digital art, collectibles, virtual real estate, and more, with the blockchain providing a tamper-proof record of ownership and transaction history.

How do NFTs work?

NFTs work by using blockchain technology to create a digital certificate of ownership.

When an NFT is created (minted), a unique token is generated on a smart contract platform like Ethereum. This token contains metadata that links to the specific asset and records all transactions. The most common standards are ERC-721 and ERC-1155, which define how these tokens can be created, transferred, and managed.

Why are NFTs popular in Japan?

NFTs have gained popularity in Japan due to strong digital art culture, anime, and gaming industries.

Japanese companies and creators have embraced NFTs for fan engagement, digital collectibles, and intellectual property protection. Additionally, the Japanese government has been working on clear regulations to support the industry while protecting consumers, making it a relatively favorable environment for NFT innovation.

What are common uses of NFTs?

Common uses of NFTs include digital art, collectibles, gaming items, virtual world assets, and event tickets.

  • Digital art: Artists can sell verified original works.
  • Collectibles: Sports cards, anime characters, and other memorabilia.
  • Gaming: In-game assets like skins, weapons, and characters.
  • Virtual worlds: Land and property in metaverse platforms.
  • Tickets: Event tickets with anti-fraud features.

New use cases are emerging in music, fashion, and identity verification.

What are the pros and cons of NFTs?

Pros of NFTs include provable ownership, new revenue streams, and transparency; cons include price volatility, environmental concerns, and copyright issues.

Pros:

  • Ownership is verified on the blockchain.
  • Creators can earn royalties on secondary sales.
  • Global market access without intermediaries.

Cons:

  • Market prices can be highly volatile.
  • Some blockchains consume significant energy.
  • Potential for plagiarism and unauthorized minting.

Understanding these trade-offs is essential for anyone considering NFT investment.

How to buy an NFT in Japan?

To buy an NFT in Japan, you need a cryptocurrency wallet, an exchange account, and a marketplace account.

First, set up a wallet like MetaMask and purchase cryptocurrency (usually Ethereum) on a Japanese exchange such as bitFlyer or Coincheck. Then, transfer funds to your wallet and connect it to an NFT marketplace like OpenSea or Rakuten NFT. Finally, browse listings and make a purchase, being mindful of transaction fees.

Are NFTs legal in Japan?

Yes, NFTs are legal in Japan, but they are subject to specific regulations.

The Japanese Financial Services Agency (FSA) has clarified that NFTs are generally not considered cryptocurrencies unless they function as a means of payment. However, they may fall under the Payment Services Act or the Act on Prevention of Unauthorized Computer Access in certain contexts. Additionally, the Consumer Affairs Agency has issued guidelines on misleading advertising in NFT sales.

What is the future of NFTs in 2026?

The future of NFTs in 2026 is expected to focus on utility, community, and integration with traditional industries.

As the market matures, we can expect NFTs to be used for membership passes, loyalty programs, and digital identity. Companies are exploring NFTs for supply chain tracking and certification. The Japanese government is also promoting the use of NFTs to boost the digital economy, which may lead to broader adoption.

Final Thoughts

NFTs are a transformative technology that has reshaped the digital ownership landscape. While the initial hype has subsided, the underlying utility is driving sustained growth in various sectors.

In Japan, the combination of cultural assets and regulatory support positions NFTs as a promising tool for creators and businesses. However, it is crucial to approach NFT investments with careful research and awareness of the risks. As 2026 unfolds, staying informed about evolving regulations and market trends will be key to leveraging NFTs effectively.