Is Japan embracing Crypto by easing its regulations?

Sahana Kiran
Source – Unsplash

Crypto has grown both in value and demand. With the entire globe embracing the market, governments were forced to roll out laws governing the industry. While some formulated stringent laws hindering innovation, a few others were still in the process of implementing them. Japan, on the other hand, was easing its existing crypto rules to be more accommodating to the industry.

As per recent reports, Japan intended to relax its laws governing cryptocurrencies. This time, the focus was on listing digital assets. With this move, the Asian country hopes to lure in prominent crypto exchanges from all around the globe.

At present, exchanges that wish to list any cryptocurrency are required to have them evaluated by the Japan Virtual and Crypto assets Exchange Association [JVCEA]. In addition to this, Japan currently allows about 50 crypto assets to be traded in the region.

However, the more lenient law is anticipated to take effect by December. This would thus obviate the need to go through the drawn-out procedure of listing a token. Following this, exchanges would be allowed list tokens within just 30 days of presenting their listing plan. This would be further demented to two weeks starting from April.

These documents acquired by Bloomberg were further confirmed by Genki Oda, Vice Chairman of the JVCEA who said,

“We hope the latest measure will help revitalize Japan’s crypto assets market.”

Additionally, he stated that pre-screenings for tokens produced through initial coin offerings and new Japanese coins might be eliminated by March 2024.

Does Japan intend to emerge as a Crypto hub?

It should be noted that this wasn’t the first time that the Japanese government decided to ease laws around crypto. Back in August, several reports of the country loosening its tax burdens on crypto began surfacing. It was brought to light that Japanese citizens could encounter a 20 percent reduction in tax on crypto earnings.

The latest relaxation of crypto laws along with this has the world speculating if the country was trying to be more accommodating towards the crypto-verse.