Mars Finance News highlights insights from Cointelegraph where WeFi CEO Maksym Sakharov identifies Japan’s regulatory approval process as the primary hurdle for its crypto sector growth, rather than tax policies. The current framework mandates a stringent self-regulatory evaluation by the JVCEA followed by oversight from the FSA, extending the timeline for token launches or IEOs to between 6 and 12 months. This protracted process has driven numerous Japanese projects to pursue overseas markets instead.
In contrast, jurisdictions like the UAE and Singapore benefit from streamlined regulatory systems that facilitate faster token approvals and product modifications. Japan’s multiple procedural delays hinder innovation and market responsiveness. Industry specialists advocate for a shift towards a risk-based, expedited approval mechanism combined with the creation of a regulatory sandbox. Such measures would foster innovation in areas like staking and enhance Japan’s competitive positioning within the global crypto ecosystem.