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Japanese Blockchain Gaming Community Reaches Out to LDP
The Japanese blockchain gaming community has reached out to the Liberal Democratic Party (LDP) in an effort to enhance liquidity in Japan’s crypto asset market.
Ryo Matsubara, director of Oasys, a GameFi blockchain, represented Japanese blockchain gaming projects during a visit to the LDP’s digital society promotion headquarters on February 21 to discuss the current state of affairs.
Issues with Current Regulations
While Matsubara acknowledged the positive impact of recently implemented taxation laws and the LPS Act in facilitating business operations for startups, he expressed concerns about stringent regulations that have stifled liquidity in Japan.
He claimed that such restrictions directly impede the growth of the GameFi ecosystem.
Asking for Friendly Regulations
To address this issue, Matsubara emphasized the importance of regulations that encourage users to invest safely in cryptocurrencies and the blockchain economy.
He said that Japan can witness an immediate surge in liquidity as more buyers and sellers engage in the market by incentivizing participation.
Oasys intends to continue collaborating with the government to ensure the global competitiveness of the Japanese Web3 market.
Japan’s Stance Towards Crypto
While Japan initially held a skeptical stance towards cryptocurrency adoption, it has gradually eased its position, recognizing the potential of the technology.
In September 2023, the Japanese government began contemplating the possibility of allowing startups to raise public funds through crypto asset issuance.
Last year, the country’s National Tax Agency also revealed that it has revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20.
FSA’s Proposed Measures
More recently, the Financial Services Agency (FSA), Japan’s primary financial regulator, proposed several measures to safeguard users against “unlawful transfers” to crypto exchanges.
However, one of these measures could potentially complicate the peer-to-peer transactions market.
If Japanese banks start rejecting transfers from one individual’s bank account to another’s crypto wallet, it could pose a significant challenge to the P2P market.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
