The Japanese gaming community that operates on the blockchain technology has reached out to the Liberal Democratic Party (LDP) in hopes of finding a solution to improve liquidity in Japan’s cryptocurrency market. On behalf of Japanese blockchain gaming projects, Ryo Matsubara, the director of Oasys, a GameFi blockchain, visited the LDP’s digital society promotion headquarters on February 21st to discuss the current situation.
Matsubara acknowledged the positive impact of recently implemented taxation laws and the LPS Act on facilitating business for startups. However, he expressed concerns regarding the strict regulations that have led to a lack of liquidity in Japan, which directly hinders the growth of the GameFi ecosystem.
By implementing regulations that encourage users to invest safely in cryptocurrencies and the blockchain economy, the liquidity in the market can experience immediate growth with the influx of more buyers and sellers. Oasys intends to continue collaborating with the government to ensure that the Japanese Web3 market remains globally competitive. Matsubara firmly believes in Japan’s potential to regain its renowned gaming history through Web3.
Although Japan initially displayed skepticism towards crypto adoption, the country has recently relaxed its stance on the technology. In September 2023, the Japanese government began making plans to allow startups to raise public funds through crypto asset issuance. Prime Minister Fumio Kishida reaffirmed the nation’s commitment to fostering the Web3 industry and recognized its potential to revolutionize the internet and spark social change.
More recently, the Financial Services Agency (FSA), Japan’s main financial regulator, proposed several measures to safeguard 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 have encouraged banks to protect users by implementing various initiatives, including extending the suspension of crypto transfers with mismatched names to both individual and corporate accounts.
In an interview, Vance Spencer, a well-known investor, emphasized the inevitability of cryptocurrencies and expressed his full support for the technology.