Japanese Banks Block Steam Payments for Adult Games, Impacting Indie Devs

Japan’s adult game industry, Japanese banks are reportedly blocking developers from accessing revenue generated through Steam sales, according to recent statements from Japanese lawmaker Taro Yamada. The issue particularly affects developers of adult-oriented games who are finding themselves unable to receive payments from their international sales on the popular gaming platform.

Japan’s “Adult Only” Game Sales Hit by Banking Restrictions

Yamada, a member of Japan’s House of Councillors who specializes in freedom of expression issues, revealed on social media that developers are facing significant obstacles when attempting to collect their earnings from overseas Steam sales. The problem appears to specifically target games classified as “Adult Only,” with banks rejecting international remittances for such content.

The situation has been verified by both Japan’s Financial Services Agency (FSA) and the Ministry of Economy, Trade, and Industry (METI). When questioned about these practices, Japanese banks justified their actions by citing the Act on Prevention of Transfer of Criminal Proceeds and the Foreign Exchange and Foreign Trade Act – regulations designed to prevent illegal activities through international commerce.

However, Yamada has challenged this interpretation during a YouTube broadcast, arguing that these restrictions are being misapplied to legitimate business transactions. The lawmaker points out that current Japanese legislation lacks specific provisions to address the unique nature of international Steam sales, effectively allowing banks to implement their own restrictive policies.

Banking Restrictions Threaten Adult Games Market on Steam

The impact on the industry could be substantial, considering Steam’s significant adult content market. Of the approximately 122,000 games available on Steam, nearly 6,000 are categorized as Adult Only, with almost half of these tagged as Hentai games. This represents about 5% of Steam’s total game catalog, highlighting the considerable market share affected by these banking restrictions.

Credits: App2top.com

The banking obstacles extend beyond just payment processing – Japanese companies involved in adult game development are reportedly facing difficulties even opening bank accounts, further complicating their ability to conduct business operations.

This isn’t the first time Japan has grappled with restrictions on adult content distribution. Yamada previously raised concerns when Visa suspended credit card payments to Japanese adult content platforms, citing brand protection measures. These actions parallel similar controversies in the United States, where financial service providers’ policies and increasing state regulations on adult content have sparked debates about free speech and content creators’ rights.

Organizations like the ACLU have voiced opposition to such restrictions in the US context, arguing that vague policy requirements from payment processors like MasterCard and Visa, combined with expanding state regulations on adult content access, pose significant threats to both creative freedom and the economic rights of content creators.

The situation highlights a growing tension between traditional financial institutions’ risk management policies and the evolving digital entertainment marketplace. As game developers and content creators increasingly rely on international platforms for distribution, the lack of clear regulatory frameworks to handle these transactions poses challenges for both creators and financial institutions.

As this matter unfolds, it poses significant questions regarding the balance between financial regulation, creative liberty, and the rights of content creators in a more globalized digital economy.

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