Market News

Japan's Gradual Crypto Approval Process Impedes Growth of Innovation

The CEO of WeFi, Maksym Sakharov, has raised concerns about Japan’s protracted cryptocurrency approval process.

He argues that this caution is driving Web3 startups and crypto funds to seek opportunities overseas.

The current framework necessitates a two-step approval from the Japan Virtual and Crypto Assets Exchange Association and the Financial Services Agency.

This process can often extend from six months to over a year, causing significant delays.

As a result, many projects feel pressured to launch in more favorable environments abroad.

Sakharov advocates for more agile and flexible regulatory approvals to support domestic innovation.

He emphasizes the need for regulatory sandboxes that allow experimental projects to develop within a supportive framework.

With swift adjustments, Japan could strengthen its position in the global crypto market.

The call for change reflects a broader trend, as countries compete to foster vibrant crypto ecosystems.

Innovating regulatory approaches may be essential for Japan to retain its competitiveness in the rapidly evolving crypto landscape.