By Chris Hollingworth 
Japan’s stringent and time-consuming approval process, rather than tax regulations, is identified by WeFi CEO Maksym Sakharov as the primary obstacle pushing Web3 startups and liquidity overseas. In a recent interview, Sakharov highlighted the challenges faced by innovative technology companies in navigating Japan’s regulatory landscape.
According to Sakharov, the lengthy approval process in Japan poses a significant barrier for Web3 startups seeking to establish a presence in the country. This slow and risk-averse approach hampers the growth and development of these companies, forcing many to look beyond Japan’s borders for more conducive environments.
While taxes are often cited as a deterrent for businesses, Sakharov emphasized that it is the bureaucratic hurdles and delays in obtaining approvals that are causing Web3 startups to consider offshore options. By streamlining the regulatory framework and expediting approval processes, Japan could potentially retain and attract more innovative companies in the Web3 space.
As the global landscape for technology and digital assets continues to evolve rapidly, countries like Japan will need to adapt their regulatory frameworks to remain competitive and attractive to emerging businesses. Sakharov’s insights shed light on the intricate challenges faced by Web3 startups and the importance of a supportive regulatory environment in fostering innovation and growth within the sector.
