🚀 Japanese Blockchain Gaming Community Seeks Political Support to Boost Crypto Liquidity 🎮

The Japanese blockchain gaming community has appealed to the LDP in order to improve liquidity in Japan's cryptocurrency market.

Japanese gamers using blockchain technology want politicians to help increase the availability of cryptocurrency.

By Ruholamin Haqshanas, Last updated: February 21, 2024

The Japanese blockchain gaming community has taken a proactive step towards enhancing liquidity in Japan’s crypto asset market. Ryo Matsubara, director of Oasys, a GameFi blockchain, recently represented Japanese blockchain gaming projects during a visit to the Liberal Democratic Party’s (LDP) digital society promotion headquarters. This visit aimed to discuss the current state of affairs and seek political support to address the liquidity concerns in Japan’s cryptocurrency market.

💡 Blockchain Gaming Community Asks for Friendly Regulations

During the meeting with the LDP, Matsubara acknowledged the positive impact of recently implemented taxation laws and the LPS Act, which have facilitated business operations for startups. However, he expressed concerns about stringent regulations that have stifled liquidity in Japan. These restrictions directly impede the growth of the GameFi ecosystem. To address this issue, Matsubara emphasized the importance of regulations that encourage users to invest safely in cryptocurrencies and the blockchain economy.

According to Matsubara, if Japan reclaims its liquidity, it can become a thriving market due to its wealth of attractive content. To achieve this, Matsubara and Oasys intend to continue collaborating with the government to ensure the global competitiveness of the Japanese Web3 market.

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🌐 Japan’s Easing Stance Toward Crypto

Japan has gradually eased its stance towards cryptocurrency adoption, 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. Additionally, the country’s National Tax Agency revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20. Prime Minister Fumio Kishida emphasized that these measures aimed to boost the blockchain and crypto sectors.

However, it is important to note that despite these positive developments, crypto investors in Japan are still subject to a maximum of 55% income tax on any earnings over JPY200,000 ($1,797) related to cryptocurrency.

🔄 Potential Challenges in P2P Transactions

Recently, the Financial Services Agency (FSA), Japan’s primary financial regulator, proposed measures to safeguard users against unlawful transfers to crypto exchanges. However, one of these measures could potentially complicate the peer-to-peer transactions market. The FSA, in collaboration with the National Police Agency, has encouraged banks to scrutinize transfers to crypto-asset exchange service providers when the sender’s name does not match the account name.

This recommendation has raised concerns among users of P2P platforms, as transactions often involve different names on the fiat and crypto ends. 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.

It is important to note that the current FSA request is presented as a recommendation rather than a mandatory requirement.

📈 Future Outlook and Investment Recommendations

The collaboration between the Japanese blockchain gaming community and the LDP is a positive development that signals a potential boost in liquidity for Japan’s crypto asset market. If the recommended regulations are implemented to incentivize user participation, Japan can witness a surge in liquidity. This would pave the way for the Japanese Web3 market to become a thriving and competitive ecosystem.

Investors and enthusiasts should keep a close eye on developments in Japan’s crypto regulations and market liquidity. With the potential for increased liquidity, investments in Japanese blockchain gaming projects and the broader crypto market in Japan could present exciting opportunities.

✨ In summary, the Japanese blockchain gaming community’s efforts to seek political support for enhanced liquidity in the crypto asset market is a significant step towards strengthening the GameFi ecosystem. Collaborating with the government to shape friendly regulations and incentivize user participation could lead to a thriving market in Japan. However, it is essential to monitor the potential challenges in P2P transactions and the regulatory landscape to make informed investment decisions.

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🙋‍♀️ Q&A: What else might readers find interesting or have concerns about?

Q1: What impact can enhanced liquidity have on the Japanese crypto asset market?

Increased liquidity in the Japanese crypto asset market can attract more buyers and sellers, making it a more vibrant and active marketplace. This surge in liquidity opens up opportunities for investors and traders, allows for smoother transactions, and promotes the growth of the GameFi ecosystem.

Q2: How do regulations affect liquidity in the crypto asset market?

Stringent regulations can stifle liquidity by creating barriers and hindering the ease of participation in the market. On the other hand, regulations that encourage safe investment in cryptocurrencies and the blockchain economy can incentivize users to engage, thus fostering liquidity.

Q3: What should investors consider when looking at the Japanese crypto market?

Investors should closely monitor regulatory developments, market liquidity, and the growth of the GameFi ecosystem in Japan. The collaborative efforts between the blockchain gaming community and the LDP provide optimism for the future, but it’s important to stay informed and evaluate investment opportunities based on reliable information.

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📚 Reference List:

1. Japanese blockchain gaming community reaches out to the LDP for political support
2. Japanese government contemplating public funds through crypto asset issuance
3. Japan’s National Tax Agency’s revised law on corporate taxes for crypto token issuers
4. Financial Services Agency’s proposal to safeguard users against unlawful transfers
5. Follow Us on Google News

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