According to Web3 industry leaders, regulatory delays in Japan are pushing crypto innovations out of the country.
Regulatory Hurdles in Japan
Regulatory complexities dominate Japan's crypto sector, prompting companies to move to more agile regions. **Maksym Sakharov** highlighted that **slow, prescriptive processes** impede innovation and foster industry relocation overseas.
Migration of Web3 Startups to Friendly Jurisdictions
The immediate effect is the migration of Web3 startups seeking supportive jurisdictions. Industry leaders point to faster-moving markets capitalizing on Japan's delays, impacting investor interest.
Japan's Decline from Post-2017 Crypto Leadership
Japan's once-leading position post-2017 has declined, paralleling the emergence of new regulatory hubs. Historical conservative measures followed major exchange hacks causing rigid oversight.
Historical trends suggest that capital outflows may persist unless processes evolve. Current outcomes hint at enduring strategic gaps, favoring regions with iterative regulatory frameworks.
