Japan’s accredited self-regulatory body for the crypto industry is simplifying a complicated screening process that digital tokens must undergo before being listed on local exchanges.
These rules will come into effect in December and have been approved by Japan’s top financial regulator, the Financial Services Agency.
But a Bloomberg report saying the Japan Virtual Currency Exchange Association (JVCEA) is trying to remove all coin screenings by 2024 is not entirely accurate, according to the body’s Vice Chair Genki Oda.
“This does not mean that the pre-screening process will be completely eliminated. JVCEA will continue to perform certain checks,” Oda said.
While Japan’s government is looking to establish strict anti-money laundering regulations for the crypto industry in line with global standards, it has also been trying to make life easier for startups in the country, which are currently burdened by heavy corporate taxes and complicated token listing requirements.
All crypto tokens are vetted by the JVCEA before they are approved for listing on local trading platforms. Currently, unless a token is already listed on at least three exchanges, it has to go through a lengthy pre-screening process to be allowed on additional exchanges.
The stringent requirement is limiting the number of tokens available for trading on Japanese exchanges, prompting local investors to turn to exchanges outside of Japan like Bybit and Binance in search of more choice, Oda said.
With the JVCEA’s new rules, if the asset is already listed on one exchange, other exchanges do not need to go through a pre-screening process to list the same asset.
“It is assumed each crypto asset exchange will conduct its own review,” Oda said in an interview with CoinDesk. The JVCEA will still make sure that each company conducts thorough reviews.
The rules, which were already shared with the crypto exchanges that make up the self-regulatory body, do not apply to assets that have been listed on…
