TRON Bans Gambling DApps to Comply with Japanese Regulations

Wilfred Michael 

Wilfred Michael

News reporter

03 April 2019,
03:20
TRON Bans Gambling DApps to Comply with Japanese Regulations

Justin Sun led cryptocurrency project Tron announced in a March 31 press release that it would place some restrictions on decentralized gambling applications developed on the TRON blockchain and how they are distributed.

The reason for restricting gambling DApps is for the project to adequately comply with local laws guiding the Japanese market where TRON is looking to get new converts.

What does the local law state? Japan’s constitution labels gambling as a criminal offense meaning that defaulters will face severe punishment from the government.

To align their business with local laws, TRON has stated that it does not support encourage or support any gambling DApp targeting the Japanese market. That means that the platform will not approve of Japanese developers building gambling Dapps on their blockchain.

Also, non-Japanese gambling DApp developers will block users with Japanese IP addresses and do their best not to offer an app that serves the interest of the local gambling community.

Lastly, TRON said it would collaborate with Japanese authorities in the war against gambling by providing them with necessary information if a developer on their platform violate the newly defined rules.

Meanwhile, TRON’s decision to work with Japanese authorities is in stark contrast with other recent developments where it has mostly been local authorities imposing sanctions on illegal cryptocurrency companies.

In March, we reported one of such cases involving CabbageTech’s founder Mr. Patrick McDonnell who U.S authorities claim defrauded investors of roughly $236,000 worth of cash and cryptocurrencies between 2014 and early 2018. McDonnell could face a twenty-year sentence for the alleged crime.

Also in the same month, Jared Rice the founder of the AriseCoin cryptocurrency pleaded guilty before a Dallas court for defrauding investors of $4.2 million worth of cash and cryptocurrency through a fake ICO.

 

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