The Japan Virtual and Crypto Assets Exchange Association (JVCEA) plans to allow crypto trading platforms to list coins without going through a lengthy screening process. “We hope the latest measure will help revitalize Japan’s crypto assets market,” said the vice chairman of the association.
Relaxing Listing Rules for Cryptocurrencies
The Japan Virtual and Crypto Assets Exchange Association (JVCEA) is planning to loosen crypto listing rules to make it easier for trading platforms to list cryptocurrencies, Bloomberg reported Wednesday, citing a document it has seen.
The association plans to allow trading platforms to list crypto tokens without going through a lengthy screening process unless the tokens are new to Japan’s market. The relaxed rules could take effect as early as December, the publication conveyed, adding that the documents outlining the changes were recently distributed to member firms.
JVCEA Vice Chairman Genki Oda, who is also the CEO of cryptocurrency exchange Bitpoint Japan, confirmed the document to the publication. He believes that the JVCEA could also scrap pre-screenings for cryptocurrencies new to Japan and tokens issued through initial coin or exchange offerings by March 2024.
We hope the latest measure will help revitalize Japan’s crypto assets market.
The JVCEA is a self-regulatory body that governs crypto exchanges operating in Japan. The organization works closely with Japan’s top financial regulator, the Financial Services Agency (FSA), to ensure its rules are in compliance with the country’s regulations. The group currently has 33 members who have started handling crypto assets, its website shows.
Oda said that over 50 cryptocurrencies are currently being traded in Japan partly due to quicker listing screenings, noting that fewer than half were traded about two years ago.
Under the JVCEA’s new rules, crypto exchanges will be able to list tokens within 30 days of reporting their listing plans and coin assessments. Trading platforms will be required to report events associated with listed coins, such as hard forks, to the JVCEA every three months.
The new rules expand on the “Greenlist” which the JVCEA introduced in April to allow exchanges to list the most common tokens faster. The association will monitor for any “inappropriate” crypto tokens and may ask member firms to stop offering them.
Binance is reportedly seeking a license to enter the Japanese crypto market after exiting it four years ago. The trading platform’s renewed interest in Japan is due to the Japanese government’s easing regulatory approach to crypto and substantial potential for user growth.