Japan’s ‘slow’ approval culture stifles crypto adoption: Expert

Key Points

1. Japan's regulatory process for crypto approvals involves a two-step review by the JVCEA and FSA, often taking 6–12 months, which delays market entry and strains resources.

2. The proposed 20% flat tax on crypto gains is less of a barrier compared to the lengthy approval system, despite the current 55% progressive tax being painful.

3. Japan lags behind jurisdictions like Singapore, the UAE, and South Korea, which offer clearer pathways and faster approvals for crypto projects.

4. Sakharov suggests adopting time-boxed, risk-based approvals and a functional sandbox to speed up the process and support innovation.

5. Other Asian regions, such as Hong Kong and the UAE, are advancing in crypto adoption through agile regulatory frameworks and initiatives like the Ensemble Sandbox.