“Improving liquidity is the key” Oasys discusses with Liberal Democratic Party Digital Society Promotion Headquarters and domestic Web3 promotion

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“Improving liquidity is the key to revitalizing the Japanese market”

Oasys, a game-specific blockchain, announced on the 21st that it held discussions with the Liberal Democratic Party's Digital Society Promotion Headquarters Web3 Project Team about the current state and future prospects of the blockchain game market.

On behalf of Japanese blockchain gaming projects, we engaged in a discussion with the Liberal Democratic Party's Digital Society Promotion Headquarters Web3 Project Team regarding the current landscape and future potential of the blockchain gaming market.
We are committed to… pic.twitter.com/XTllrWC9Ac

— Oasys | Blockchain for Games (@oasys_games) February 21, 2024

The company says it will continue to work with the government to strengthen the international competitiveness of Japan's Web3 market. Ryo Matsubara, director of Oasys, reported on the content of the discussion as follows.

The issue of the LPS Law regarding corporate unrealized profit taxation has been resolved, and Web3 startups can now be launched from Japan. The next step is to improve liquidity to create an environment for growth.

I gave a presentation to the ruling party and government about how important liquidity is for Web3 game projects.

The Japanese crypto asset (virtual currency) market has been depleted of liquidity due to various factors and backgrounds, but if this is restored, the Japanese market, which is rich in attractive content, will become more active.

The Ministry of Economy, Trade and Industry announced on the 16th that it has been decided to add virtual currency to the list of assets that investment business limited partnerships (LPS) can acquire and hold.

Japanese venture capital firms (VCs) will be able to invest in projects that only issue virtual currencies, which will lower the hurdles for Web3 companies to raise funds and conduct business. The industry has welcomed the move.

connection:
Cabinet approves bill regarding LPS virtual currency acquisition to promote Japanese VC investment in Web3 companies

What is LPS?

A type of investment partnership formed for the purpose of investing in unlisted venture companies. It is common for VCs to invest in startup companies in the form of LPS, as they can invest with their liability limited to the amount invested.

Virtual currency glossary

Japanese government actions

Digital Minister Takuya Hirai also posted about the meeting. He said that he discussed advanced initiatives and issues with Aster Network's Sota Watanabe, BOBG's Kengo Masuyama, and Oasys' Ryo Matsubara, and expressed his positive attitude as follows.

Digital society promotion web3PT. Hearing the latest situation from companies based in Singapore. Discussed advanced initiatives and problems with Astar Network's Sota Watanabe, BOBG's Kengo Masuyama, and OASYS' Ryo Matsubara. Regulatory reform and tax system optimization are… pic.twitter.com/Lkcna4AXJR

— Takuya Hirai (@hiratakuchan) February 20, 2024

Regulatory reform and tax system optimization are essential for Japanese entrepreneurs to demonstrate their strengths domestically. Our role is to create an environment where they can grow in Japan.

In December of last year, the Japanese government decided to abolish the year-end unrealized gain tax on corporate virtual currency holdings through tax reform.

Corporations will not be taxed if they continue to hold the tokens, and will only be taxed on profits generated by selling tokens such as virtual currencies. It is expected to reduce hurdles for corporations to hold virtual currencies for long-term investment, governance, and staking purposes, and support the development of the Web3 industry.

connection:
Cabinet approved the FY2018 Tax Reform Outline, excluding corporate crypto assets from end-of-period mark-to-market valuation taxation