According to Maksym Sakharov, CEO of WeFi, the main barrier preventing cryptocurrency innovation from leaving Japan is not due to taxes but rather the slow and rigid approval process. Even with a fixed tax rate of 20%, the pre-approval model of the Financial Services Agency (FSA) and JVCEA still causes startups and capital flows to move overseas.
Listing a token in Japan can take 6 to 12 months, leading many projects to choose to list abroad first. He stated that the current process prioritizes risk avoidance over promoting innovation, which is in stark contrast to the flexibility of the UAE, Singapore, or South Korea.
Sakharov calls for reform by implementing fixed-time approvals, deploying a sandbox to support staking and governance. If there is no change, domestic projects will continue to expand abroad, not because of taxes but due to cumbersome procedures.
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Japan's 'slow' approval culture hinders cryptocurrency adoption:
According to Maksym Sakharov, CEO of WeFi, the main barrier preventing cryptocurrency innovation from leaving Japan is not due to taxes but rather the slow and rigid approval process. Even with a fixed tax rate of 20%, the pre-approval model of the Financial Services Agency (FSA) and JVCEA still causes startups and capital flows to move overseas.
Listing a token in Japan can take 6 to 12 months, leading many projects to choose to list abroad first. He stated that the current process prioritizes risk avoidance over promoting innovation, which is in stark contrast to the flexibility of the UAE, Singapore, or South Korea.
Sakharov calls for reform by implementing fixed-time approvals, deploying a sandbox to support staking and governance. If there is no change, domestic projects will continue to expand abroad, not because of taxes but due to cumbersome procedures.