Japan’s blockchain gaming community has expressed concerns about the lack of liquidity in the country’s crypto asset market, seeking assistance from the Liberal Democratic Party (LDP).
Ryo Matsubara, director of Oasys, a GameFi blockchain, represented Japanese blockchain gaming projects during discussions at the LDP’s digital society promotion headquarters on February 21.
While Matsubara acknowledged the positive impact of recently implemented taxation laws and the LPS Act on business ease for startups, he highlighted worries about strict regulations causing a decline in liquidity. This, in turn, is hindering the growth of the GameFi ecosystem in Japan.
To address this issue, Matsubara emphasized the importance of regulations encouraging users to invest safely in cryptocurrencies and the blockchain economy. Such measures could lead to an immediate boost in liquidity by attracting more buyers and sellers.
Oasys intends to collaborate with the government to maintain Japan’s global competitiveness in the Web3 market. Matsubara is optimistic about Japan reclaiming its historic gaming prominence on Web3, stating, “If Japan recovers its liquidity, it will be the hottest market as we have a lot of attractive content.”
Despite Japan’s initial skepticism about crypto adoption, the country has gradually eased its stance towards the technology. In September 2023, the Japanese government considered allowing startups to raise public funds through crypto-asset issuance. Prime Minister Fumio Kishida reaffirmed the country’s commitment to fostering the Web3 industry, recognizing its potential to transform the internet and bring about social change.
The Financial Services Agency (FSA), Japan’s primary financial regulator, recently proposed measures to protect users from “unlawful transfers” to crypto exchanges. Some of these measures may impact the peer-to-peer transactions market, including stopping transfers to crypto-asset exchange service providers if the sender’s name differs from the account name
. The FSA and the National Police Agency (NPA) encouraged banks to implement these initiatives to safeguard users, applying the suspension of crypto transfers with mismatched names to both individual and corporate accounts.
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