The Japanese blockchain gaming community has reached out to the Liberal Democratic Party (LDP) seeking assistance in enhancing liquidity within Japan's crypto asset market.
On February 21, Ryo Matsubara, representing the GameFi Blockchain Oasys project, visited the Digital Society Promotion Headquarters of the Liberal Democratic Party to discuss the prevailing conditions.
While acknowledging the positive impact of recently enacted tax laws and the Limited Partnership Act (LPS) in facilitating business operations for startups, Matsubara expressed apprehension regarding stringent regulations contributing to a liquidity shortage in Japan. This shortage directly impedes the growth of the GameFi ecosystem. Matsubara emphasized the importance of regulations that encourage secure cryptocurrency investments, suggesting that increased liquidity would result from heightened participation of buyers and sellers. Oasys intends to collaborate further with the government to uphold Japan's global competitiveness in the Web3 market. Matsubara envisions Japan reclaiming its prominent position in the gaming realm on the Web3 platform once liquidity is restored.
While Japan initially displayed skepticism towards cryptocurrency adoption, recent developments indicate a shift in stance. In September 2023, reports emerged of the Japanese government considering plans to permit startups to raise public funds through crypto asset issuance. Prime Minister Fumio Kishida reiterated Japan's dedication to nurturing the Web3 industry, highlighting its potential to revolutionize the internet and instigate societal transformation.
In a bid to safeguard users from "illegal transfers" to cryptocurrency exchanges, Japan's primary financial regulator, the Financial Services Agency, proposed several protective measures. One such measure, if implemented, could significantly complicate the peer-to-peer trading landscape.
The Financial Services Authority and the National Police are urging banks to shield users by implementing various initiatives, including suspending transfers to crypto asset trading service providers in cases where the sender's name differs from the account name. The press release's Japanese version clarifies that this suspension should extend to both personal and corporate accounts, underscoring the authorities' commitment to bolstering user protection.
