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Japan's FSA Considers Regulating Pokémon Go's In-Game Currency

The Financial Times newspaper reported on Wednesday that Japan's Financial Services Agency is considering whether it will regulate PokéCoins, the Pokémon Go game's in-game currency, as a prepayment system, which would put the currency under the jurisdiction of the Payment Services Act. The FSA didn't state when it will make the decision.

If the FSA goes forward with the decision, Pokémon Go's developer Niantic Labs would be required to disclose the balance of unused in-game currency held by users in March and September every year. If, in either month, the total came to more than 10 million yen (about US$96,300), Niantic would be compelled to deposit as much as 50 percent of the unused currency balance in yen in a Japanese bank account as security.

The FSA is currently debating the matter with Niantic Labs. The decision, according to Financial Times analysts, has implications for other games available in the Japanese market that manage a purchasable in-game currency. In Pokémon Go, players purchase PokéCoins with real money, and then use the PokéCoins to buy in-game items like Poké Balls, Lucky Eggs, and other beneficial in-game items. Many other mobile games use similar in-game currency systems, such as Puzzle & Dragons, Clash of Clans, and Monster Strike.

The Financial Times, citing market research group SuperData Research, noted that revenue from mobile games in Japan has reached 8.6 billion yen (about US$83 million) in 2016, triple the amount from 2012.

The Pokémon Go iOS and Android app launched in select countries including the United States on July 6, and has since launched in more than 100 countries and territories. The app is also slated to launch for Apple Watch. The "Pokémon GO Plus" accessory shipped on September 16.

Source: Financial Times (Leo Lewis)