The Japanese gaming community in the blockchain industry has reached out to the Liberal Democratic Party (LDP) for assistance in improving liquidity in Japan’s cryptocurrency market. On behalf of Japanese blockchain gaming projects, Ryo Matsubara, director of Oasys, a GameFi blockchain, visited the LDP’s digital society promotion headquarters on February 21 to discuss the current situation.
Matsubara acknowledged that the recently implemented tax laws and the LPS Act have made it easier for startups to do business. However, he expressed concerns about strict regulations that have led to a lack of liquidity in Japan, which directly impacts the growth of the GameFi ecosystem.
By implementing regulations that incentivize safe investments in cryptocurrencies and the blockchain economy, liquidity in the market can increase with more buyers and sellers. Oasys plans to continue working with the government to ensure the global competitiveness of the Japanese Web3 market. Matsubara believes that Japan has the potential to reclaim its iconic gaming history on Web3.
Initially, Japan was skeptical about adopting cryptocurrencies, but its stance has since become more relaxed. In September 2023, the Japanese government began planning to allow startups to raise public funds through crypto asset issuance, demonstrating its commitment to fostering the Web3 industry. Prime Minister Fumio Kishida emphasized the potential of Web3 to transform the internet and bring about social change.
More recently, the Financial Services Agency (FSA), Japan’s principal financial regulator, proposed measures to protect users from unlawful transfers to crypto exchanges. These measures could potentially complicate the peer-to-peer transactions market. The FSA and the National Police Agency encouraged banks to safeguard users by extending the suspension of crypto transfers with mismatched names to both individual and corporate accounts.