March 27, 2024
GameFi Community in Japan Voices Liquidity Concerns to Lawmakers
Policy & Regulation

GameFi Community in Japan Voices Liquidity Concerns to Lawmakers

In a bid to revitalize Japan’s crypto asset market and bolster liquidity, the Japanese blockchain gaming community has turned to the country’s ruling Liberal Democratic Party (LDP) for assistance. Ryo Matsubara, director of Oasys, a prominent GameFi blockchain platform, led the delegation representing Japanese blockchain gaming projects in discussions at the LDP’s digital society promotion headquarters on February 21st.

Matsubara acknowledged recent governmental efforts, such as favourable taxation laws and the Liberal Democratic Party’s (LDP) Act for the Promotion of the Digital Transformation of Society (LPS Act), aimed at fostering a conducive environment for startups. However, he expressed concerns over stringent regulations that have stifled liquidity in Japan’s crypto market, directly impeding the growth of the GameFi ecosystem.

Highlighting the growth potential, Matsubara emphasized the importance of regulations that incentivize safe investments in cryptocurrencies and blockchain technology. He stressed that such measures would attract more buyers and sellers, leading to an immediate surge in liquidity. Oasys reaffirmed its commitment to collaborating with the government to ensure the global competitiveness of Japan’s Web3 market, expressing optimism about Japan’s ability to leverage its rich gaming history in the emerging Web3 landscape.

“If Japan recovers its liquidity, it will be the hottest market as we have a lot of attractive content,” stated Matsubara.

Despite initial scepticism towards crypto adoption, Japan has recently adopted a more favourable stance towards blockchain technology. In September 2023, the Japanese government signalled its willingness to allow startups to raise public funds through crypto-asset issuance, reaffirming its commitment to nurturing the Web3 industry. Prime Minister Fumio Kishida underscored the transformative potential of Web3 technology in revolutionizing the internet and driving social change.

However, recent initiatives by Japan’s Financial Services Agency (FSA) and the National Police Agency to protect users from unlawful transfers to crypto exchanges have raised concerns within the crypto community. One such measure involves urging banks to suspend transfers to crypto-asset exchange service providers if the sender’s name differs from the account name, potentially complicating peer-to-peer transactions.

The FSA’s directives, though aimed at enhancing user protection, have prompted discussions regarding their potential impact on Japan’s crypto market dynamics. As stakeholders navigate these regulatory developments, the Japanese blockchain gaming community remains hopeful that constructive dialogue with government authorities will pave the way for a more vibrant and resilient crypto ecosystem in Japan.

Image: Wallpapers.com

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