By making it simpler to list virtual coins, Japan aims to further relax cryptocurrency regulations, which might increase the country’s appeal to Binance and other overseas digital-asset exchanges.
According to records obtained by Bloomberg News, the organization that oversees cryptocurrency exchanges intends to permit them to sell coins without subjecting them to its time-consuming screening procedure unless the tokens are brand new to the Japanese market.
Japan’s new listing rules might go out in December
As early as December, the loosened regulation may go into force, making it easier for startups to compete with established firms by facilitating the listing of tokens and decreasing the entrance barrier. The documentation explaining the modifications was recently sent to member businesses.
Vice Chairman Genki Oda stated in comments he described as personal opinions that the Japan Virtual and Crypto assets Exchange Association might also do away with pre-screenings for coins that are new to the country as well as for tokens issued via initial coin or exchange offers.
In a departure from the regulatory tightening of recent years, Japan is taking the revitalization of its cryptocurrency sector more seriously. Four years after retreating, Binance, the largest digital asset exchange in the world, is again seeking a license to operate in Japan.
The efforts taken by the nation contrast with the stricter regulation appearing in several countries after a $2 trillion wipeout of digital assets from their peak last year led to explosions at crypto hedge firms.
The most recent actions go beyond the JVCEA “Greenlist” that was first announced in 2022 and allowed some tokens to qualify for quicker postings. The JVCEA will keep an eye out for any “inappropriate” coins and may request that member businesses cease selling them.
Every three months, cryptocurrency exchanges will have to submit reports to the JVCEA regarding occurrences involving the listed currencies, such as so-called hard forks, in which a blockchain divides due to modifications to the underlying software code.
In Japan, more than 50 coins are swapped, up from less than half two years ago, in part because of speedier listing checks, according to Oda.