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Following the public dissent shown by the Japanese system on the current system, Japan’s cryptocurrency exchanges are no longer required to screen digital tokens before listing.
The authority that supervises crypto exchanges in the country, the Japan Virtual and Crypto Assets Exchange(JVCEA), revealed that Prime Minister Fumio Kishida’s administration wasn’t satisfied with the current system.
Last month, a government panel, including the prime minister, criticized the listing process for coins. The panel believes that the certified self-regulatory organization takes a long time to pre-screen digital assets. It further stated that it would increase the criteria while being conscious to protect users.
According to the sources, the governing body held a discussion contemplating whether the local exchanges should do the listing without a screening process.
It will review assets after their listing, contrary to the earlier system of screening the assets before the listing. Considering whether exchanges should delist assets after trading has begun will also be part of it.
The decision on which approach to take will be taken by the year end and should result in a fairly significant change in how exchanges work.
Foreign exchanges such as Coinbase that possess the knowledge of tokens than local companies would highly benefit from the liberalization of the rules.
Japan Exchange Publishes ‘green list’ of 17 Approved Cryptos
Moreover, the JVCEA also published a ‘green list’ of 17 digital assets that member exchanges could list once. Earlier, a new token underwent a six-month or more screening process.
Just like several other countries, Japan wants to prioritize investors’ protection first. The Kishida administration has clarified that they are fully focused on protecting users despite whatever the criteria is.
Stablecoins have become a key point of discussion after the Terra collapse. Japan recently passed a law regarding stablecoins that would render investors protection and allow regulated entities and agents to issue stablecoins from 2023.
Besides, Japan is working on its own CBDC (Central Bank of Digital Currency). The country’s central bank is in the early stages of executing this experiment.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
