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Why Japan’s Crypto Innovation Is Slowing Down (2025)

  • Writer: Sammy Salmela
    Sammy Salmela
  • Jul 27, 2025
  • 2 min read
Japanese crypto startup founder looking concerned at delay in approval process.

Article with AI Analysis:

Date: 27 July 2025

Source: Cointelegraph / Commentary by Maksym Sakharov


Introduction

Japan has long been a symbol of tech excellence but in the world of Web3 and crypto, it's falling behind. While taxes are often blamed, a deeper issue is hurting innovation: Japan’s slow and cautious approval system. This is making talented teams and capital leave the country not because of cost, but because of delay.


A Culture That Slows Everything Down

Maksym Sakharov, CEO of WeFi, argues that Japan's approval culture prescriptive, slow, and risk-averse is the biggest hurdle for Web3 adoption. Listing a token or launching a project can take 6–12 months due to Japan’s two-step system: first, review by the Japan Virtual and Crypto Assets Exchange Association (JVCEA), then final approval from the Financial Services Agency (FSA).

Multiple revisions, delays, and bureaucratic loops make it hard for any startup to survive. “You spend a year building, only to be told your token can’t be listed,” says Sakharov. “That uncertainty kills momentum.”


Other Nations Are Moving Ahead

Compared to Japan, other countries are adapting faster:

  • Singapore is strict but efficient.

  • UAE gives quicker approvals with innovation-friendly frameworks.

  • South Korea focuses on post-launch regulation, not pre-approval.

Sakharov highlights that Japan’s culture not its tax regime is the real blocker. “Culture eats tax cuts for breakfast,” he says.


What Needs to Change

Sakharov proposes a way forward:

  • Introduce time-boxed approvals

  • Enable a dynamic regulatory sandbox

  • Allow experimentation with staking and governance

  • Focus on proportional disclosures, not blanket policies

Without these reforms, Japan risks becoming irrelevant in the rapidly evolving Web3 space.


AI-Powered Sentiment Analysis

Our AI analysis of this article revealed:

  • Sentiment Score: 0.93 – Overall tone is cautiously optimistic with a call for change.

  • Financial Sentiment: 1.13 – Highlights potential growth but reflects underlying systemic concerns.

  • Polarity Score: 0.02 – Neutral presentation of facts with minimal bias.

  • Subjectivity Score: 0.331 – Some expert opinions present, but overall tone remains fact-based.


These scores suggest:The article offers a rational but slightly hopeful perspective. While it outlines problems, it also discusses constructive solutions. Emotionally, the tone is grounded appealing to reform rather than frustration.


Read More

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Disclaimer

This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.

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