Way back before the VCRA the sale of airsoft weapons was unregulated as they were viewed as toys, and in the beginning these toy guns really did look like toys. Then we saw the introduction of realistic looking weapons from the likes of Tokyo Marui. Again, in the early days, these things were expensive and generally had to be imported directly from Japan. Single-shot springers soon gave way to electric automatic weapons and before long Soft Air evolved into Airsoft and it became viable to use these sorts of weapons to skirmish.
Airsoft started to become popular, and once this occurred the Chinese saw an opportunity to market copies of the TM stuff or to produce their own versions of the cheaper springer weapons.
Before long a lot of retailers, including market stalls, were selling toy guns that looked like real weapons. Because these weapons were pocket money priced a lot of children were buying them and running around the streets with them; the so called 'springer kiddies'.
This was at a time when there were big problems with the gang culture, and soon gang members were carrying these as they were almost indistinguishable from a real firearm unless examined closely. This let to a lot of high profile cases of Police firearms teams being deployed to people walking around with 'guns' only to find them carrying toys.
There was a big movement nationally, following on from the trend in the USA, where mother's groups were campaigning to get guns banned - I can't remember exactly, but I think one of the groups were called 'Mother's Against Guns'. These groups put pressure onto the Government to take action.
So, as part of a wide review of the powers to deal with violent crime, the Violent Crime Reduction Bill was proposed. There was lots of involvement from Airsofters to try and get the hobby recognised, but at the time our voice wasn't very strong, and the view that it would be safer to annoy a small niche group rather than allow these realistic looking toys into the hands of gang members who commit crime.
The bill became an Act, and overnight retailers were no longer able to sell realistic looking toy guns and a problem was solved; Thankfully though airsofters were persistent and our voice became louder and a specific defense was introduced allowing airsofters to continue using such 'toys' for our hobby.
As a side note on paintball markers. At the time paintball markers didn't resemble realistic firearms at all; it is only in recent years they have started to look like realistic weapons. As far as the law goes I would suggest it all depends on which legal person is looking at the legislations - personally, I feel that these realistic looking paintball makers would come under the VCRA, but this has not been tested in court as yet.