Japan’s slow and risk-averse approval system, not taxes, is the real barrier driving Web3 startups and liquidity offshore, says WeFi CEO Maksym Sakharov.
Japan’s regulatory bottlenecks, not taxes, are the real reason crypto innovation is leaving the country, according to Maksym Sakharov, co-founder and CEO of decentralized onchain bank WeFi.
Sakharov told Cointelegraph that even if the proposed 20% flat tax on crypto gains is implemented, Japan’s “slow, prescriptive, and risk‑averse” approval culture will continue to push startups and liquidity offshore.
“The 55% progressive tax is painful and very visible, but it’s not the core blocker anymore,” he said. “The FSA/JVCEA pre‑approval model and the absence of a truly dynamic sandbox are what keep builders and liquidity offshore.”
