In a nutshell: There are around 6,000 sex games on Steam, almost half of which are Hentai titles. Japan is the most prominent producer of this form of adult entertainment, but the developers have been blocked from receiving their income by the country's government.
Taro Yamada, a member of the Japanese Diet's House of Councillors, wrote on X (via Automaton) that there have been numerous cases of Japanese developers of adult-oriented games being unable to transfer their profits to Japanese banks from abroad, which means no money coming in from Steam.
Yamada added that Japanese companies who deal with adult games are being prevented from opening bank accounts.
The strange situation has been confirmed by the Financial Services Agency – the country's banking regulator – and the Ministry of Economy, Trade and Industry (METI), which oversees games.
GameSpark writes that in interviews the FSA conducted with banks, the financial institutions said preventing the transfer of overseas revenue was "not only because the games are intended for adults," but also "a comprehensive judgment" based on Japan's Act on Prevention of Transfer of Criminal Proceeds and its Foreign Exchange and Foreign Trade Act.
The acts in question are designed to prevent money laundering and terrorist financing by regulating financial transactions, and to regulate international financial transactions and trade to maintain national security and economic stability, respectively.
While it seems strange to apply such legislation to legitimate sales on Steam, Yamada says the problem is that Japanese law doesn't have procedures in place to deal with the many intricacies of international Steam sales, leaving banks to apply their own rules. He says he is currently working with the Financial Services Agency and METI to reach a solution that works for everyone.
Financial services have a history of caution when it comes to association with adult websites and other content. In 2020, Mastercard and Visa cut ties with Pornhub following a damning New York Times exposé on illegal content being hosted on the world's most popular porn site.
As of January 2025, Pornhub has restricted access in 17 US states due to the implementation of age verification laws aimed at preventing minors from accessing adult content.
Earlier this week, Oklahoma Senator Dusty Deevers proposed a total ban on pornography "aimed at restoring moral sanity." Anyone convicted of procuring, viewing, or possessing unlawful pornography in the state would be guilty of a felony, facing up to 10 years in prison or a maximum fine of $100,000.
Japan's sex game developers blocked from receiving Steam payments by banks
