The Japanese Virtual Currency Asset and Exchange Association (JVCEA) is exploring relaxing coin listing rules. Japan, which has a $1 trillion cryptocurrency trading market, is shifting its focus and innovating by making it easier to list digital tokens.
Prospective digital currencies need to go through a long coin listing screening process, which often takes more than a half year to complete.
JVCEA members have complained about the time-consuming process, which has reportedly stifled the growth of Japan’s $1 trillion crypto business.
Extensive Coin Listing Procedures
Because it caters to coins that are popular globally, the screening method has made it difficult for new crypto entrants to gain market share. Furthermore, members must compete if they want to have several tokens accepted.
The Financial Services Agency (FSA), Japan’s watchdog, has now allowed the association to undertake the process on its own with the latest concessions.
Coinbase, for example, began as a local subsidiary selling only five currencies, compared to Coincheck Inc. and GMO Coin Inc., both of which provide 17 tokens.
The listing of somewhat popular tokens will be easier under the new guidelines. For example, eligible tokens will include currencies that have been traded in the country for at least six months and are listed on at least three local exchanges.
The organization is still working to develop a more efficient and improved method of listing coins that aren’t expressly traded in Japan.
The Crypto Market Is Extremely Overpriced
These new restrictions were developed in response to the arrival of Coinbase and FTX into the competitive Japanese crypto sector through subsidiaries that registered crypto exchanges.
If authorized, it would make it easier for exchanges to list Bitcoin (BTC) and Ether (ETH) (ETH). (As of this writing, the current price of Bitcoin is $38643.39.) BTC is 43.82 percent of the way down from its all-time high of $68789.63.)
For the longest time, Japan has lagged behind the rest of the world in terms of listing digital coins.
According to JVCEA data, the total value of cryptocurrency exchanges in Japan increased by half in the first 11 months of 2021, totaling 103 trillion yen ($900 billion).
Despite the fact that these data are rapidly increasing, it is evident that Japan’s presence in the global crypto industry is not as competent.
So yet, the choice in the proposed rules has not been completely sorted out. JVCEA has likewise been silent on the subject of foreign digital coin listings.
