Maksym Sakharov, CEO of WeFi, has criticized Japan's regulatory barriers, emphasizing that delays in token approval hinder the sector's growth.
Critique of Japan's Regulatory System
Sakharov pointed out that obstacles created by regulators such as the JVCEA and FSA are the primary barrier to innovation in the crypto industry. He expressed concerns over the inefficiencies of a system designed to avoid risks and how it drives developers and projects away.
Impact on the Crypto Industry
Regulatory issues lead many projects to choose to launch their tokens overseas. This results in capital and liquidity flight, negatively impacting the growth of local blockchain developments. Stakeholders are facing rising operational costs and extended project timelines.
Need for a Regulatory Sandbox
Sakharov proposes the establishment of a dynamic regulatory sandbox to prevent further capital flight from Japan. He believes that without reforming the approval processes, Japan will continue to lose technological and financial opportunities.
Sakharov's criticism highlights the need for a reassessment of regulatory approaches in Japan to support innovation and keep the local crypto market competitive.
