Regulatory barriers in Japan are causing crypto project developers to move abroad. This is the main concern expressed by WeFi CEO Maksym Sakharov.
Impact of Regulation on Crypto Projects
Maksym Sakharov, CEO of WeFi, argues that Japan's conservative regulatory environment—not its tax code—is driving developers and liquidity abroad. The lengthy approval culture often means that the process of listing a token or launching an exchange can drag on for up to a year due to multiple approval layers involving both the Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association (JVCEA).
Comparison with Other Asian Countries
In contrast, other countries in the region, such as South Korea and the UAE, are taking a more agile regulatory approach. South Korea prioritizes ongoing oversight rather than pre-approval, allowing for quicker project launches. The UAE is emerging as a global leader in digital asset regulation, while Singapore, though strict, offers clearer guidelines and faster turnarounds.
Need for Reforms in Japan
Sakharov believes that Japan needs to adopt faster, more flexible regulatory frameworks to retain promising projects. He suggests the introduction of deadline-bound approvals, better sandbox environments for experimentation, and simplified disclosure rules to avoid stifling small projects. Without these changes, Japan may continue to lose its top builders.
The regulatory challenges facing Japan's crypto industry call for attention and reform efforts to meet the needs of a rapidly evolving market.
