Crypto exchanges in Japan could soon enjoy relaxed token listing policies as part of Prime Minister Fumio Kishida’s intentions to support digital asset growth in the country.
The Japan Virtual and Crypto assets Exchange Association (JVCEA) plans to implement shorter token listing procedures by December 2022, Bloomberg reported.
Pre-screening for new cryptos could also be scrapped by 2024, said the regulator’s vice president Genki Oda.
The Japan Virtual and Crypto assets Exchange Association (JVCEA) drafted a plan to implement eased token listing policies before the end of 2022, according to documents seen by Bloomberg.
At press time, crypto platforms must undergo a lengthy screening process with the JVCEA if they wish to list new tokens on their exchanges. Indeed, around 50 digital assets are tradable in the country when this report was written.
The current regime arguably positioned Japan as a hostile jurisdiction for cryptocurrencies, a notion Prime Minister Fumio Kishida hopes to turn around.
Per the JVCEA’s proposal which was first hinted at in a June report, crypto exchanges will be able to list new tokens within 30 days of submitting their coin assessment reports to the watchdog. The regulator plans to kick start the new token listing regime by December 2022.
Genki Oda, Vice president of the crypto watchdog, remarked that the JVCEA ideally plans to cut down the screening time to 14 days by 2023. By 2024, the regulator could completely scrap pre-screening requirements, Oda said.
Under the new regime, Oda’s association will require quarterly reports from crypto exchanges. The reports will cover new developments tied to the listed tokens ranging from price updates to possible hard forks.
Japan’s New Approach To Web3 Currencies And Companies
The JVCEA’s latest token listing regime aligns with Prime Minister Fumio Kishida’s plans to revamp Japan as a Web3-friendly nation and bolster digital asset ecosystem growth. Kishida’s so-called “New Capitalism” named crypto as a key point for economic growth.
Already, crypto companies are supposedly eyeing the nation as a potential foothold for expansion in the region. FTX launched its regulated crypto trading service in the country back in June. Competitor and leading crypto exchange Binance also has eyes on a crypto license in Japan following its exit from the jurisdiction in 2018.