Japan’s bottlenecks regulations, not taxes, are the real cause of crypto change leaving the country, according to Maksym Sakharov, co-founder and CEO of Web3 firm WeFI.
Sakharov told cointelegraph that even suggested 20% flat tax In crypto acquisitions are implemented, the “slow, prescriptive, and risk of approval of Japan’s culture will continue to push startups and liquidity on the coast.
“The 55% progressive tax is painful and visible, but this is no longer the main blocker,” he said. “The FSA/JVCEA pre -approved model and the absence of a truly dynamic sandbox is what keeps the builders and coastlines on the coast.”
Listed a token or launching a Initial Offering of Exchange (IEO) In Japan involves a two -step regulation process. First, a self -evaluation is required through the Japan Virtual and the Crypto Assets Exchange Association (JVCEA), following the final supervision of the Financial Services Agency (FSA).
That process could stretch go-to-market hours in 6-12 months or more, Sakharov said, adding that “it burns and forces many Japanese teams to list overseas first.”
He noted that there is a repeated delay in areas such as JVCEA token screening, IEO White Paper Vetting and product change notifications in FSA, which often requires a lot of revision. “The process is designed to avoid the downside, not to speed up the change,” he said.
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Japan Trails UAE, South Korea and Singapore
Compared to other constituents, Sakharov said Japan is significant. “Japan is slower,” he said, noticing that a simple token list could take half a year or longer.
“Singapore is also strict, but it provides clearer paths … The UAE is faster on average … South Korea’s vpaupa focuses on continuous exchange obligations instead of a Japanese approval style, so the lists are usually processed material faster.”
He warned that the suggested 20% taxes and classification of crypto as a financial product would not move the status quo unless the culture changes around the approval. “Culture eats tax cuts for breakfast,” Sakharov said.
As a solution, Sakharov encouraged regulators to adopt “time -boxed, dangers based on approval,” implement a functional sandbox that supports experimentation with staking and management, and introduces proportional disclosure requirements.
He warned that without these changes, domestic crypto projects would likely continue to measure overseas, driven by uncertainty around approval and long wait hours, rather than tax burdens. “It’s about developing just 12 months to tell your token can’t be listed or your product may not be launched.”
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Asian leading in crypto gets global attention
Earlier this month, Maarten Henskens, head of protocol growth in Startale Group, said the Asian leadership in tokenization was Drawing growing attention from global investorswith the clarity of regulation in the region that attracts capital to the edges.
Hong Kong moved quickly, Launching Ensemble Sandbox as a rapid track regulation that changes in change. “While Japan builds a long -term depth, Hong Kong shows how agility can bring life experiment,” Henskens said.
United Arab Emirates is another Asian country The making of tokenization steps. The city regulation authorities have introduced progressive frameworks that encourage the release and trade of tokenized securities, which attracts global investors and fintech companies.
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