Japan’s Cumbersome Crypto Approval Process Stifles Innovation, WeFi CEO Warns

Japan's rigorous two-tier regulatory approval system for crypto ventures is driving Web3 startups and digital asset funds to more hospitable jurisdictions, according to WeFi CEO Maksym Sakharov. The mandatory clearance from both the Japan VIRTUAL and Crypto Assets Exchange Association and the Financial Services Agency typically consumes 6-12 months—a timeline Sakharov describes as innovation-chilling.

Unlike tax burdens often cited as relocation drivers, Sakharov identifies bureaucratic latency as the critical bottleneck. Projects face unsustainable opportunity costs during the waiting period, compelling many to launch operations in Singapore, Dubai or other regulatory sandbox environments. The WeFi executive advocates for streamlined approvals and experimental licensing frameworks to retain blockchain talent.