Crypto: Japanese regulators more accommodating

In a bid to boost the crypto market, Japanese regulators have decided to ease the process of listing tokens on crypto exchanges. In its current form, the rules relating to the registration of assets are proving to be particularly demanding. This is a brake on the development of the sector.

Japanese regulators: Allow exchanges to easily list tokens

While many countries are tightening crypto regulations, Japanese regulators are adopting the opposite strategy. The Japan Virtual Currency Exchange Association (JVCEA) plans to simplify the process of listing tokens on local crypto exchanges. Currently, before they can list a cryptoasset, exchanges must submit an application to the JVCEA. The regulator is then responsible for checking whether the token complies with the laws.

Japanese regulators are working on simplifying the token listing process.

The verification process is both long and complex. With the simplification of the rules, the waiting period will decrease from several months to a few weeks. According to Bloomberg, this less demanding process will come into effect as early as December. From there, local platforms will be able to list a token within 30 days of submitting a request to the JVCEA. This period should be reduced to two weeks from April. This information is confirmed by Genki Oda, the vice-president of JVCEA.

Continue to monitor assets after listing

According to Genki Oda, the vice president of JVCEA, this relaxation concerns coins that have already been traded in the country. The verification process will be maintained for any new asset in the Japanese market. Japanese regulators may even drop preliminary verification of tokens, but only for tokens launched by local projects. Oda say details of the streamlined process will be available by March 2024.

Regulators are getting softer on listing assets on crypto exchanges, but they are still tough on monitoring assets that are already listed. The exchanges must, for example, regularly report quarterly on the cryptoassets tradable on their platforms. Any events like hard forks should be reported. Tokens deemed inappropriate may be removed from the list.

Japan: understanding the role of the JVCEA

Since 2020, the Payment Services Act (PSA) has governed cryptocurrency exchanges and traditional financial exchanges. The PSA set up the JVCEA to help the Japanese government pass legislation that is not overtaken by technological innovations. The latter has great power. It is authorized to apply crypto-related regulations to Japanese Virtual Asset Service Providers (VASPs). The rules are strict.

Due to the requirement of the verification process, only about fifty coins are exchanged in Japan. This is far from the 20,000 coins listed on coinmarketcap in September 2022. This relaxation of the rules is part of the strategy to revitalize the cryptocurrency industry in Japan. A vision supported by Prime Minister Fumio Kishida who is strongly convinced that Web3 can revitalize the local economy.

With the relaxation of rules, Japan also says it wants to focus on digital technology and the implementation of Web3 services. The Prime Minister wants to expand investments in the metaverse and NFTs. Is Japan on its way to becoming a major crypto hub?

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential!

Similar Posts