The Japan Virtual and
Crypto Assets Exchange Association (JVCEA) is in talks to decide whether to jettison
its current cryptocurrency token screening procedures, Bloomberg reports.
JVCEA currently requires
local cryptocurrency exchanges that want to list new tokens to undergo a
screening process.
However, this could
change soon, private sources told the outlet.
According to sources, JVCEA could begin to focus instead on policing cryptocurrencies and
tokens after they are listed.
However, this new
approach will not apply to initial coin offerings, sources further told the
outlet.
The self-regulatory body
is looking to make a definite decision with regards to the change before the end of 2022, the anonymous sources added.
However, a source within
Japan’s Financial Service Agency told the outlet that it was not clear whether the financial industry watchdog will approve JVCEA’s recommendations.
The new development
comes after Japanese Prime Minister’s (Fumio Kishida) administration expressed
dissatisfaction with the current system of listing digital assets in the country.
Kishida last month
criticized JVCEA for taking too long in its pre-screening procedures.
Moreover, the news comes on the heels of Japan’s recent passage into
law, a bill that defines
stablecoins as digital money and sought to entrench investor protection.
Crypto Regulation in
Japan
In March, Japan
announced that it was introducing a green list of cryptocurrencies that could
be listed in a-go on exchange.
The goal was to simplify the process of listing new
cryptocurrencies on exchanges in the country.
Also, Huobi, one of
Japan’s most popular cryptocurrency exchanges and part of the Huobi Group, last
month disclosed that Japanese citizens will be able to start
trading Bitcoin Satoshi’s Vision
(BSV) this month.
With the move, BSV, the native cryptocurrency of Bitcoin Satoshi’s Vision (BSV) will
become the 15th cryptocurrency on Huobi Japan.
In 2021, Japan’s
Financial Services Agency (FSA) established a
new unit to oversee digital
currency regulatory frameworks.
Citing three anonymous
officials, Reuters had reported at the time that the move followed the
country’s concern over the influence of private money on the existing financial
system.
Japan has
always been a progressive country when it comes to crypto adoption and
regulation.
Some of the earliest
cryptocurrency exchanges were established in the East Asian country and have
led the market in Bitcoin trading for many years.
