Japanese Blockchain Gaming Industry Collaborates with LDP to Boost Crypto Market Liquidity
Summary:
Japan's blockchain gaming industry sought assistance from the Liberal Democratic Party (LDP) to enhance liquidity in the crypto asset market. Ryo Matsubara, director of Oasys, a GameFi blockchain, described both positive and negative impacts of newly implemented taxation laws and regulations. The Financial Services Agency (FSA), and National Police Agency (NPA) proposed measures to protect users from unlawful crypto transactions, while the government is also considering allowing startups to raise funds via crypto assets.
The blockchain gaming industry in Japan reached out to the leading political organization, the Liberal Democratic Party (LDP), for support in enhancing liquidity in the Japanese digital asset market. Ryo Matsubara, the head of Oasys, a gaming-focused blockchain platform, represented various blockchain gaming initiatives in a meeting with the LDP's digital society promotion office on Feb. 21 to deliberate on the existing scenario. Matsubara accepted that the newly enforced LPS Act and taxation rules facilitate the establishment of startups but pointed out the harsh regulations that have caused liquidity shortage in Japan, thereby stunting the development of the gaming finance sector.
As fixing corporate unrealized gain and the LPS Act has been dealt with, starting web 3 based startups is possible from Japan. The next course of action is improving liquidity to enable growth.
The presence of regulations that enable users to safely invest in the blockchain economy and digital currencies could lead to immediate liquidity growth with the arrival of more buyers and sellers. Oasys aims to maintain its cooperation with the government to preserve the global competitiveness of the Japanese digital industry. Matsubara is confident in Japan's ability to revive its legendary gaming legacy on Web3, stating that the nation could become a leading market due to its vast array of appealing content.
Even though Japan was initially cautious about adopting cryptocurrencies, its approach towards the technology has lately softened. Reports from September 2023 indicate that the Japanese government was considering allowing startups to raise public funds by issuing crypto assets. Japanese Prime Minister Fumio Kishida reaffirmed the nation's dedication to promoting the Web3 sector, emphasizing its potential for internet innovation and social change.
More recently, the Financial Services Agency (FSA), Japan's main financial watchdog, proposed a few actions to protect users from unauthorized transfers to crypto exchanges, potentially affecting the peer-to-peer (P2P) transactions. Both FSA and the National Police Agency (NPA) urged banks to shield users by implementing some key initiatives such as halting transfers to crypto exchange service providers if the sender's name doesn't match the account holder's name. This regulation should also apply to individual and corporate accounts.
Published At
2/21/2024 11:32:32 AM
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