Crypto: Japan exchanges to list tokens without pre-screening

Sahana Kiran
Source – Unsplash

Regulations have become immensely pertinent in the market. Throughout 2022, despite the downfall of several crypto projects, the Japanese government has been finding ways to ease the existing regulations that are in place. In a similar move, the government revealed that crypto exchanges will now be able to list tokens without pre-screening.

According to recent documents seen by Bloomberg, the organization that oversees cryptocurrency exchanges told its members of the new regulation on Wednesday. It should be noted that it is effective immediately and it will allow them to list assets without having to go through a thorough pre-screening.

However, this is limited to existing crypto assets. Any digital asset that is new in the Japanese market will have to go through a pre-screening process.

Earlier in March, the Japan Virtual and Crypto Assets Exchange Association [JVCEA] with a total of 33 local crypto exchanges rolled out a “green list.” This list entails a total of 18 assets that are widely accepted. It is likely that assets from the green list are being exempted from the pre-screening process.

This was quite surprising considering the failure of the FTX empire. Following this, regulators across the globe were alerted and began imposing stringent laws. However, Japan was taking a particularly different route.

Is Japan the next crypto hub?

Japan’s latest move surprised quite a few. However, a spokesperson from BitFlyer had previously stated,

“We are thinking of expanding the amount of listed cryptocurrencies for trading in future. The era of cryptocurrencies has just started. Japanese people are becoming increasingly interested in virtual currencies.”

The number of people veering into crypto could have prompted regulators in Japan to acclimate their interest in the market. More recently, Binance entered the Japanese market but a prominent exchange Kraken announced its plans to exit the region.

With relaxed crypto regulations, the Japanese market will most likely lure in several other projects.