Members of Japan's Liberal Democratic Party (LDP) recently heard concerns from the nation's blockchain gaming community about regulatory measures impacting the liquidity of the cryptocurrency market.

In a meeting on February 21, Ryo Matsubara, representative of Oasys—a blockchain platform focused on gaming—outlined the challenges faced by the sector due to recent regulatory enactments.

Although acknowledging the benefits brought by the new taxation laws and the LPS Act, specifically in facilitating business operations for startups, Matsubara highlighted the negative consequences of stringent regulations.

These regulations are reportedly stifling liquidity in the Japanese crypto market, a critical issue for the thriving GameFi ecosystem that depends on fluid market conditions to foster growth.