He was instrumental in creating the original rules of karate competition that many kicking and punching sports still use today. However, when the interpretation of these rules by these organizations began to change the foundation of karate from its roots of a martial art to that of simply a sport, seeking only a medal as its aim - he was deeply disappointed and established the International Traditional Karate Federation which is recognized throughout the world, including the International Olympic Committee as the International Federation governing Traditional Karate.
Sensei Nishiyama then set out to correct the competition rules to ensure the competition of Traditional Karate would not deviate from its deep roots as a Martial Art based on the principles of self-defense. Subsequently, he created several new categories of competition each designed to develop a principle of understanding of the Art by the student through competition.
Governments around the world have recognized him for his contribution to society and his steadfast determination to protect Traditional Karate for future generations. In 2000, he was bestowed the "Order of the Sacred Treasure, Gold Rays with Rosette", by the Emperor of Japan in a special ceremony conducted at the Imperial Palace in Tokyo. Sensei Nishiyama was one of only eleven recipients from outside Japan that were honoured at the ceremony for their contribution to Japanese culture.