Japan to relax crypto-currency listing rules

The Japan Virtual and Cryptographic Assets Exchange Association (JVCEA) plans to allow crypto-currency exchange platforms to list coins without going through a lengthy vetting process. “We hope this latest move will help revitalize the Japanese crypto asset market“, said the association’s vice president.

Relaxation of crypto-currency listing rules.

The Japan Virtual and Cryptographic Assets Exchange Association (JVCEA) plans to relax crypto-currency listing rules to make it easier for exchange platforms to list crypto-currencies, 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 the Japanese market. The relaxed rules could take effect as early as December, the publication reported, adding that documents outlining the changes were recently distributed to member firms.

JVCEA Vice President Genki Oda, who is also the CEO of crypto-currency exchange Bitpoint Japan, confirmed the document to the publication. He believes that JVCEA may also remove presets for crypto-currencies new to Japan and tokens issued through initial coin offerings or exchanges by March 2024.

Genki Oda noted:

We hope this latest move will help revitalize the Japanese crypto asset market.

The JVCEA is a self-regulatory organization that governs crypto-currency exchanges operating in Japan. The organization works closely with Japan’s main financial regulator, the Financial Services Agency (FSA), to ensure that its rules comply with the country’s regulations. The group currently has 33 members who have begun trading in crypto-assets, its website says.

Genki Oda said that more than 50 crypto-currencies are currently traded in Japan, thanks in part to the acceleration of the listing review, noting that less than half were traded about two years ago.

Under the new JVCEA rules, crypto-currency exchanges will be able to list tokens within 30 days of reporting their listing plans and coin valuations. Exchange platforms will be required to report events associated with listed coins, such as hard forks, to the JVCEA every three months.

The new rules are based on the “green list“that JVCEA introduced in April to allow exchanges to list the most common tokens more quickly. The association will monitor any crypto-currency tokens “inappropriate” and may require member companies to cease offering them.

Binance is reportedly in the process of applying for a license to enter the Japanese crypto market after exiting four years ago. The exchange platform’s renewed interest in Japan is due to the Japanese government’s relaxed regulatory approach to crypto and substantial potential for user growth.