Summary:
- Prime Minister Fumio Kishida suggested the current process stifles the crypto economy.
- The JVCEA could implement a new system by the end of the year.
- Token listings in Japan take as long as 6 months or more before approval is issued.
- A new policy could incentive foreign exchanges like Coinbase and FTX.
- Updated listing rules might also help domestic platforms grow.
The process for listing cryptocurrency coins in Japan could experience an overhaul in the coming months following comments from the country’s Prime Minister, Fumio Kishida.
A report from Bloomberg said that the Kishida regime regards the existing token listing procedure as cumbersome and ineffective. Currently, applications take as long as six months or more before coins are approved to appear on exchanges. Also, there’s no guarantee that the application will receive the green light after the long waiting period.
Prime Minister Kishida expressed the sentiment during a government panel in May. Kishida opined that the self-regulatory organization spends a long-time pre-screening tokens and this ultimately stunts growth among crypto exchangers and the country’s broader digital ecosystem.
One of the biggest exchanges in Japan, GMO Coin Inc, has only 21 crypto tokens listed as of press time.
Also, the official added that the agency should consider easing the screening process while also installing structures to protect users and investors.
Japan’s Virtual and Crypto Assets Exchange Association (JVCEA)
The self-regulatory organization in question is Japan’s Virtual and Crypto Assets Exchange Association, an agency launched back in April 2018 to handle token listings after a massive $500M hack on the Coincheck exchange.
After platforms complained about the JVCEA’s long process, a green list comprised of a select number of tokens earlier in 2022. These coins would require zero screening and could be listed by any exchange in the country, per the regulator’s policy.
In total, 17 coins feature on the list including Basic Attention Token (BAT), Bitcoin Cash (BCH, BCC), Bitcoin (BTC, XBT), Polkadot (DOT), Ethereum Classic (ETC), Ethereum (ETH), Enjin Coin (ENJ), Lisk (LSK), Litecoin (LTC), MonaCoin (MONA), OMG Network (OMG), Qtum (QTUM), NEM (XEM), Stellar (XLM), Ripple (XRP), Tezos (XTZ), and Symbol (XYM).
Moving forward, the JVCEA plans to hold discussions in the following months and announce a decision regarding the current listing policy before the year runs out. Notably, initial coin offerings (ICOs) will not fall under the purview of whatever amendments are made.