The GameFi community in Japan has expressed concerns about liquidity to lawmakers, seeking assistance to enhance the crypto asset market’s fluidity in the country.
Representing Japanese blockchain gaming projects, Ryo Matsubara, director of Oasys, a GameFi blockchain, met with the Liberal Democratic Party’s (LDP) digital society promotion headquarters on February 21 to address the current challenges.
While acknowledging recent regulatory changes aimed at facilitating business operations for startups, Matsubara highlighted the adverse impact of stringent regulations on liquidity, directly impeding the growth of the GameFi ecosystem in Japan.
Make Japanese🇯🇵 Web 3 market more liquid.
As the issue of corporate unrealized gain taxation and
LPS Act has been resolved, we can launch web 3 startups from Japan🔥.
The next step is to improve liquidity in order to create an environment for growth.I made presentation to… https://t.co/nj5tGxaEna
— Ryo Matsubara_EN (@RyoMatsubara3) February 21, 2024
He emphasised the significance of regulations that encourage safe investment in cryptocurrencies and the blockchain economy, foreseeing increased liquidity with greater participation from buyers and sellers. Oasys intends to continue its collaboration with the government to ensure the global competitiveness of Japan’s Web3 market. Matsubara envisions Japan reclaiming its historic gaming prominence in the Web3 era once liquidity concerns are addressed:
“Recovering liquidity in Japan could make it the most vibrant market due to our wealth of appealing content.”
Despite initial scepticism, Japan has recently shown a more open attitude towards crypto technology. In September 2023, the government began considering allowing startups to raise public funds through crypto asset issuance. Prime Minister Fumio Kishida reaffirmed the nation’s commitment to fostering the Web3 industry, recognizing its potential to revolutionise the internet and catalyse social progress.
However, recent recommendations by Japan’s Financial Services Agency (FSA) and the National Police Agency have introduced measures to safeguard users from unlawful transfers to crypto exchanges, potentially complicating peer-to-peer transactions.
Among the suggested initiatives is the instruction for banks to halt transfers to crypto-asset exchange service providers if the sender’s name differs from the account name. The press release in Japanese clarifies that this suspension of crypto transfers with mismatched names should apply to both individual and corporate accounts.