Japan’s cryptocurrency industry growth is being hampered by extended regulatory delays for new token launches, overshadowing concerns about tax policies as the sector’s primary constraint.
The existing approval process requires rigorous self-regulatory scrutiny by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), followed by oversight from the Financial Services Agency (FSA). This dual-layer system typically spans six to twelve months during token launches or initial exchange offerings (IEOs), creating significant bottlenecks.
Comparatively, jurisdictions like the United Arab Emirates and Singapore enjoy faster token launches due to more efficient regulatory frameworks. Experts highlight this contrast as detrimental to Japan’s competitiveness in attracting blockchain projects.
Industry specialists advocate for urgent reforms, recommending adoption of a risk-based expedited approval mechanism and creation of regulatory sandboxes. These solutions aim to accelerate innovation in emerging areas such as staking while ensuring compliance.