Japan’s cryptocurrency exchange governance body is in discussion with the prime minister to drop the strict screening rules of token listing. The decision was followed after Prime Minister Fumio Kishida expressed that he was unhappy with the present system.
According to individuals familiar with the situation, the Japan Virtual and Crypto Assets Exchange Association, which controls digital coin listings, has discussed allowing local exchanges to list cryptocurrencies without going through its screening procedure.
Japan to take action in case of problems after the listing
The current stance is such that the regulatory body will focus on the asset after it is listed, instead of scrutinizing it during the listing process. The process will also include the decision on whether to delist the token in case a problem arises after trading has commenced. However, the new rules will not apply to initial coin offerings.
“The certified self-regulatory organization tends to spend a long-time pre-screening” crypto assets and that it would “ease the criteria while being mindful of the need to protect users.”
Government panel
Even if the screening procedure is eliminated, a legal obligation for crypto exchanges to submit any plans to offer new coins to the regulator is likely to remain in place, the sources told Bloomberg. The ease of token listing will provide a potential boost to foreign exchanges like Coinbase, which has a significantly broader knowledge than the local exchanges.
The Japan Virtual and Crypto Assets Exchange Association (JVCEA) also released a list of pre-approved cryptocurrencies that the exchanges could list without any testing. Previously, for a token to be listed, it had to go through a six-month waiting period.
The initiative shows Japan’s vision to provide protection to investors and ease the process of listing new tokens. The country is also working on deploying its CBDC.