Japan’s Crypto Governing Body Is Looking to Ease Rules to List New Cryptocurrencies

The Japan Virtual and Crypto assets Exchange Association (JVCEA), the body that governs the working of crypto exchanges in the country, is looking to ease rules for the listing of digital tokens. The recent decision comes as Prime Minister Fumio Kishida expressed discontent over the existing system while simultaneously approving stablecoins as digital money.

Sources familiar with the matter said that The Association recently held discussions with local Japanese crypto exchanges. Taking a shift from this stand, The JVCEA Association won’t be involved during the listing process. Instead, they will actively participate in policing the assets after listing. Furthermore, they are looking into the possibility of asking the exchanges to delist tokens in case of major risks arise later, said people familiar with the matter.

This would mean a major liberalization of Japan’s crypto trading market. It would also mean the opportunity to do more token listings. At present, one of Japan’s largest crypto exchanges GMO Coin only has 21 cryptocurrencies listed. Further, the development will also allow foreign exchanges to set up a base in Japan. However, the sources added that these rules won’t apply to Initial Coin Offerings (ICOs).

Streamlining the Crypto Listing Process in Japan

Last month, a government panel involving Prime Minister Fumio Kishida criticized the overall crypto listing process in the country. The panel said:

“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 recommendations from the JVCEA will first pass through a screening by Japan’s top financial regulator, FSA. But even if the JVCEA is to drop the pre-listing screening process, a legal requirement will still be in place wherein exchanges will need to report on listing new digital assets.

Earlier in 2022, JVCEA released a greenlist of digital assets that member exchanges can list in a go. The current process also involves the listing of coins that may not be on the JVCEA green list.