Japan's slow approval process for crypto projects is affecting domestic startups and funds, pushing them to seek opportunities overseas.
Barriers to Innovation in Japan
Japan's lengthy crypto approval process, regulated by the Financial Services Agency (FSA) and the Japan Virtual Currency Exchange Association (JVCEA), is hindering the growth of domestic projects. Industry leaders emphasize that slow regulations are stifling crypto adoption in the local market.
Exporting Innovation Abroad
Due to regulatory inefficiencies, Japanese startups are increasingly looking towards countries like Singapore and Hong Kong, where conditions are more favorable for business. Maksym Sakharov, CEO of WeFi, noted that the slow and cumbersome approval process is the primary reason for the exodus of startups and crypto funds from Japan.
Need for Regulatory Reforms
Experts stress the need for regulatory reforms to revitalize the local crypto market. Historically, conditions may remain strict, which could undermine Japan's position as a leading innovator in the cryptocurrency industry.
Startups and funds in Japan's crypto sector are considering relocation abroad due to slow approvals and stringent regulations, highlighting the need for regulatory changes.
