CDS Crypto News Japanese GameFi Community Expresses Liquidity Concerns to Legislators
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Japanese GameFi Community Expresses Liquidity Concerns to Legislators

The Liberal Democratic Party of Japan has been informed that stringent regulations are depleting the liquidity of the Japanese crypto markets.

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Japanese Gamefi Community Expresses Liquidity Concerns To Legislators

Crypto News– 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.

Japanese GameFi Community Expresses Liquidity Concerns to Legislators

On February 21, Ryo Matsubara, director of Oasys, a GameFi blockchain platform, visited the LDP’s digital society promotion headquarters on behalf of Japanese blockchain gaming projects to address the current situation.

Matsubara acknowledged the positive impact of recently implemented taxation laws and the LPS Act in facilitating business operations for startups. However, he expressed concerns regarding stringent regulations that have led to decreased liquidity in Japan, directly hindering the growth of the GameFi ecosystem. He proposed that regulations incentivizing users to invest safely in cryptocurrencies and the blockchain economy could significantly boost liquidity by attracting more buyers and sellers. Oasys intends to continue collaborating with the government to ensure the global competitiveness of Japan’s Web3 market. Matsubara remains optimistic about Japan’s ability to revive its iconic gaming heritage in the Web3 era, stating:

If Japan regains its liquidity, it will become the most vibrant market given our wealth of appealing content.”

While Japan initially held reservations about crypto adoption, its attitude toward the technology has gradually softened in recent times.

In September 2023, reports emerged indicating that the Japanese government was considering allowing startups to raise public funds through crypto asset issuance. During this period, Japanese Prime Minister Fumio Kishida reiterated the nation’s dedication to nurturing the Web3 industry, emphasizing its capacity to revolutionize the internet and spur societal transformation.

More recently, the Financial Services Agency (FSA), Japan’s primary financial regulator, proposed a series of measures aimed at safeguarding users from “unlawful transfers” to crypto exchanges. One of these measures could potentially create significant complications for the peer-to-peer transactions market.

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