Japan plans to further loosen cryptocurrency rules by making it easier to list virtual coins, potentially burnishing the country’s allure for Binance and rival foreign digital-asset exchanges.
(Bloomberg) — Japan plans to further loosen cryptocurrency rules by making it easier to list virtual coins, potentially burnishing the country’s allure for Binance and rival foreign digital-asset exchanges.
The body that governs crypto exchanges plans to allow them to list coins without going through its lengthy screening process, unless the tokens are new to Japan’s market, according to documents seen by Bloomberg News.
The relaxed rule could take effect as early as December, helping startups compete with established players by smoothing the process of listing tokens and lowering the bar for market entry. The documents outlining the changes were distributed to member firms recently.
By March 2024, the Japan Virtual and Crypto assets Exchange Association could also scrap pre-screenings for coins new to the nation, as well as for tokens issued through initial coin or exchange offerings, Vice Chairman Genki Oda said in comments he described as personal views.
‘Revitalize’ Crypto
“We hope the latest measure will help revitalize Japan’s crypto assets market,” he said in an interview, while also confirming the documents. Oda is president of software developer Remixpoint inc.
Japan is getting more serious about rejuvenating its crypto market, a shift away from the regulatory tightening of a few years ago. Binance, the world’s biggest digital-asset exchange, is seeking a license to operate in Japan four years after it retreated, partly because of the change in stance.
The country’s steps contrast with the tougher oversight emerging in some jurisdictions after a $2 trillion wipeout in digital assets from last year’s peak led to blowups at crypto hedge funds and lenders.
Once the JVCEA’s planned measure takes effect, exchanges will be able to list tokens within 30 days of reporting their listing plan and coin assessments. Oda said the goal is to trim that to within 14 days from April at the latest.
Remaining Watchful
The latest moves goes beyond the JVCEA “Greenlist” introduced earlier in 2022, whereby some tokens qualified for faster listings. The JVCEA will watch for any “inappropriate” coins and may call on member firms to stop offering them.
Crypto exchanges will need to report every three months to the JVCEA about events associated with listed coins, such as so-called hard forks, where a blockchain splits because of changes to the underlying software code.
Over 50 coins are being traded in Japan, compared with fewer than half about two years ago, thanks partly to quicker listing screenings, Oda said. Aggregator CoinGecko currently counts more than 13,000 digital tokens globally, though many are hardly traded so-called zombie tokens.
The prospective shift in crypto listing rules comes as Prime Minister Fumio Kishida pursues an agenda for reinvigorating Japan’s economy under the rubric of “New Capitalism,” including support for the growth of so-called Web3 firms. The term “Web3” refers to a vision of a decentralized internet built around blockchains, crypto’s underlying technology.
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