In a recent statement released by the TRON Foundation, they inform that they will be collaborating with Japan and regulatory agencies in the country in case Tron dApps violate Japanese laws and regulations.
Tron To Collaborate With Japanese Authorities
Tron (TRX) could be banning gambling decentralized applications (dApps) that target the Japanese market. The foundation currently suggests developers in Japan not to develop any gambling dApps on the platform.
Tron informs that they are also working in order to be compliant with laws and regulations in Japan. Nonetheless, there is no clear information about why the Foundation decided to release this statement.
On the matter, the Tron Foundation wrote:
“TRON will collaborate with the Japanese government and provide necessary support if any TRON dApps violate Japanese laws and regulations.”
The Tron network works in a similar way as EOS, a very centralized network in the cryptocurrency market. Tron has block producers that work in a similar way as the block producers in EOS, who are able to freeze ownership a number of times. It is possible for the network to invalidate and ban some decentralized applications that operate on top of the Tron network, which shows that the network is not so decentralized in the end.
As reported by Trust Nodes, unlike Ethereum where there are 10,000 nodes that must agree on changing the rules, in Tron, the number of nodes or representatives is just 27. Thus, it is very easy to change the rules in this network.
Local governments could easily contact Tron authorities and the network validators and ask them to behave in specific ways. Things would be different in Bitcoin (BTC) or Ethereum, that require a larger number of individuals validating the decisions that affect the whole network.
There is no other information on the matter and what could have triggered this announcement. However, the Japanese government has taken very hard measures against cryptocurrency companies operating in the space. After a year in which several exchanges experienced some security issues, the government decided to impose strict regulations for companies to operate in the country.
This also shows that governments could influence the decisions that some crypto networks take. Tron has been vulnerable to pressures from a country and this could expand to other jurisdictions and crypto networks as well.
Currently, at the time of writing this article, Tron is the 11th largest cryptocurrency in the market with a valuation of $1.56 billion. Each TRX coin can be purchased for $0.0233 as reported by CoinMarketCap.