Japan’s GameFi community has raised fairness concerns with the legislature.

Japan's blockchain gaming community has approached the Liberal Democratic Party (JDP) asking for help in improving liquidity in Japan's crypto asset market.

On February 21, Ryo Matsubara, director of GameFi blockchain of Oasys, visited LDP's digital community promotion headquarters on behalf of blockchain game projects in Japan to discuss the current landscape.

Matsubara acknowledged that the recently enacted tax laws and the LPS Act will promote ease of doing business for start-ups. However, he is concerned about strict regulations that have dried up liquidity in Japan, which directly affects the development of the GameFi ecosystem.

Make the Japanese Web 3 market more liquid.

With the issue of corporate unrealized profit tax and LPS law resolved, we can launch 3 startups from the Japanese website. The next step is to improve liquidity to create an environment for growth.

I submitted to… https://t.co/nj5tGxaEna

— Ryo Matsubara_EN (@RyoMatsubara3) February 21, 2024

Laws that encourage users to safely invest in cryptocurrencies and the blockchain economy can see rapid growth in liquidity as more buyers and sellers flood in. Oasis plans to work with the government to ensure the global competitiveness of Japan's Web3 market. Matsubara believes in the potential of Japan to reclaim its legendary gaming history on Web 3:

“If Japan recovers its liquidity, it will be a very hot market because we have a lot of attractive content.”

While Japan was initially very skeptical about crypto adoption, it has recently softened its stance on the technology.

Related: Japan opens up Web3 investments to domestic VCs.

In September 2023, the Japanese government reportedly began planning to allow startups to raise public funds through crypto asset issuance. At the time, Japan's Prime Minister Fumio Kishida confirmed the country's commitment to developing the Web3 industry. He also pointed out the potential of the Internet to change and bring about social change.

Recently, the Financial Services Agency (FSA) — Japan's main financial regulator — suggested a number of measures to protect users from “illegal transfers” to crypto exchanges, and one that could significantly complicate the peer-to-peer (P2P) trading market.

The FSA and the National Police Agency (NPA) have encouraged banks to protect consumers, including:

“Stopping transfers to crypto-currency exchange service providers if the sender's name is different from the account name.”

The Japanese press release explains that the ban on crypto transfers should be extended to individual and corporate accounts with false names.

Magazine: ‘Crypto Is Inevitable' So We're Going ‘All In': Meet Vance Spencer, Permabul