Japan’s 6–12-month crypto approval delays stifle innovation push startups offshore
Japan’s regulatory framework for cryptocurrency is increasingly criticized for stifling innovation due to its slow and risk-averse approval processes, according to Maksym Sakharov, co-founder and CEO of Web3 firm WeFi. Sakharov highlighted that Japan’s prescriptive regulatory culture, rather than proposed tax policies, is the primary driver of crypto startups and liquidity moving offshore [1]. He emphasized that even if a proposed 20% flat tax on crypto gains is implemented, Japan’s bureaucratic delays will continue to hinder the sector’s growth.
The current approval process for token listings or initial exchange offerings (IEOs) in Japan requires two stages: first, a self-regulatory review by the Japan Virtual and Crypto…
