The Japan Virtual and Crypto Assets Exchange Association (JVCEA), which regulates the operation of crypto exchanges in the country, is considering easing rules for digital token listing.
Prime Minister Fumio Kishida recently expressed dissatisfaction with Japan’s existing system while also approving stablecoins as digital money.
According to sources acquainted with the situation, The Association has recently held discussions with local Japanese crypto exchanges. Taking a shift from this stand the JVCEA Association will not be involved during the listing process. Instead, after the assets are listed, they will actively participate in policing them. Furthermore, they are also looking into the idea of asking exchanges to delist tokens in case major risks arise later according to those familiar with the situation.
This would imply a major liberalization of the crypto trading market in Japan. It would also provide the opportunity to list more tokens. At present, GMO Coin, one of Japan’s top crypto exchanges only lists 21 cryptocurrencies. Foreign exchanges will also be able to establish a base in Japan as a result of the development. However, the sources added that these laws will not apply to Initial Coin Offerings.
Simplifying Japan’s Crypto Listing Process
Last month, a government panel led by Prime Minister Fumio Kishida criticized the country’s overall crypto listing procedure. According to the panel,
“The certified self-regulatory organization tends to spend a long-time pre-screening” crypto assets and that it would “ease the criteria while being mindful of the need to protect users.”
However, the new JVCEA suggestions will be subjected to a review by Japan’s top financial regulator, the FSA. But even if the JVCEA drops the pre-listing screening process, there will still be a legal requirement for exchanges to report on new digital asset listings.
JVCEA had released a green list of digital assets that member exchanges can list in a go earlier in 2022. The present process also includes the listing of coins that are not on the JVCEA’s green list.
