The blockchain sector in Japan is witnessing proactive engagement from gaming communities seeking to enhance the crypto asset market’s liquidity. Ryo Matsubara, the director of GameFi blockchain initiative Oasys, recently approached the Liberal Democratic Party’s digital society promotion center, advocating on behalf of such projects. Matsubara’s visit on February 21st aimed at fostering discussions around the current regulatory environment.
Advocating for a More Open Market
While recognizing the business-friendly nature of Japan’s recent tax laws and the LPS Act, Matsubara highlighted the stringent regulations that are currently suppressing market liquidity. These restrictions not only inhibit the GameFi ecosystem’s expansion but also impact the overall growth of Japan’s blockchain gaming community. There is a belief that easing these regulations could trigger a surge in market participation, thereby improving liquidity.
Transitioning Towards Crypto Acceptance
Japan’s initial reluctance towards cryptocurrencies is undergoing a gradual shift. In September 2023, reports emerged that the government was considering enabling startups to generate capital through crypto assets. Prime Minister Fumio Kishida expressed the nation’s dedication to nurturing the Web3 industry, recognizing its transformative potential. Additionally, Japan’s Financial Services Agency (FSA) has been working on measures to safeguard against illegal transfers to crypto exchanges, including proposals that may significantly impact the P2P transaction landscape.
The proposed regulatory changes by the FSA and National Police Agency intend to ensure secure transfer operations to crypto exchanges by matching sender and account names. This protective measure is suggested to be applicable across both individual and corporate accounts, indicating a more comprehensive approach to transaction security within the crypto space.
Oasys is committed to ongoing collaboration with the government to position Japan as a competitive force in the global Web3 market. The overarching goal is to recapture Japan’s esteemed legacy in gaming through the innovative lens of blockchain technology.