Japan’s Virtual and Crypto Assets Exchange Association (JVCEA) is considering changes to the listing process for cryptocurrencies on local exchanges in the country. Currently, exchanges in Japan have to go through a lengthy verification process before they are allowed to list a cryptocurrency. This process involves a thorough examination of the cryptocurrency and its underlying technology, as well as an assessment of the risks and rewards of listing.
However, the JVCEA, the self-regulatory body responsible for overseeing the operations of crypto exchanges in Japan, plans to allow exchanges to list crypto tokens without this rigorous screening process if the coins were previously traded in Japan. This means that a cryptocurrency that has already been traded on a Japanese exchange does not have to go through the same lengthy selection process to be listed on another exchange in the country.
Ease the cryptocurrency approval process
While this change should make it easier for cryptocurrencies to be listed on exchanges, it is important to note that new crypto tokens hitting the Japanese market still require careful scrutiny. This means that any new cryptocurrency wishing to be listed on a Japanese exchange still has to go through a verification process to ensure that it meets the necessary standards and regulations.
Overall, this move by the JVCEA is seen as positive for the crypto industry in Japan, as it can help lower the barrier to entry for small crypto businesses and encourage broader crypto adoption. – currencies in the country.
The relaxation of the list of cryptocurrencies in Japan, which is being considered by the country’s Virtual and Crypto Assets Exchange Association (JVCEA), is expected to come into effect as early as December. This change would allow local crypto exchanges to list cryptocurrencies without the current lengthy verification process, provided the coins were previously traded in Japan. New crypto tokens hitting the Japanese market are always under scrutiny.
According to an internal document, JVCEA Vice President Genki Oda said the agency could abolish the testing procedure entirely by March 2024. The move could help lower the barrier to entry for small businesses. cryptocurrency in Japan, where around 50 types of cryptocurrencies are currently traded due to the strict licensing process. In comparison, neighboring South Korea has around 650 types of coins in the crypto market.
A positive step into the future
The potential relaxation of the cryptocurrency regulatory regime in Japan is seen as a positive step for the industry, as it could boost the spread of cryptocurrencies in the country. It could also help level the playing field for smaller crypto businesses that have previously struggled to meet the requirements of the current review regime. Overall, this news should be welcomed by the crypto community in Japan.
The move by Japan’s Virtual and Crypto Assets Exchange Association (JVCEA) to ease the process of listing cryptocurrencies on local exchanges comes as Japanese Prime Minister Fumio Kishida voiced his support for digital finance and the launch from Web3. Kishida recently announced new investments in growing the non-fungible token (NFT) and metaverse industries, and included cryptocurrencies in his plans to jump-start what he calls the “new capitalism” economy. This shows that the Japanese government is positive about the crypto industry.
In addition to Kishida’s support for the industry, Japan’s financial regulator and Ministry of Commerce are reportedly considering easing the taxation of crypto profits as part of the 2023 tax reform. This would be another positive move for the crypto industry in Japan as it encourages the spread of cryptocurrencies and investments in them could promote.
Conclusion
Overall, the JVCEA’s decision to simplify the registration process, coupled with the government’s favorable stance towards the crypto industry and potential tax changes, shows that Japan is increasingly favorable to the industry. These developments are likely to be welcomed by the crypto community in Japan and can help spur growth and innovation in this sector.