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Low Cap Cryptos May Find Home in Japanese Crypto Exchanges After New Regulations

2 mins
Updated by Ryan Boltman
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In Brief

  • Japan’s Virtual Currency Exchange Association (JVCEA) plans on loosening laws surrounding the introduction of new digital assets on crypto exchanges.
  • Soon, exchanges will only have to wait 30 days to list a new cryptocurrency, after submitting an assessment report.
  • The renewed emphasis on integrating cryptocurrencies by Japan’s government has made Binance reconsider entering the market there.
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Japan regulator will reportedly amend certain rules, making it simpler for exchanges to list new digital assets.

Crypto exchanges will soon be able to offer new virtual currencies without having to go through a laborious screening process. According to plans from Japan’s Virtual Currency Exchange Association (JVCEA). 

Low cap cryptos benefit from listing limitations:

Once these changes happen, which could happen as early as December, crypto exchanges will be able to list new cryptocurrencies. This includes low cap cryptos, within 30 days of submitting their initial assessment reports on them. The JVCEA’s Vice Chairman Genki Oda said he hopes to reduce this to a period of just 14 days by April of next year. Exchanges will have to report on events related to each of their listed coins every three months.

Changes will not happen to coins being newly introduced in Japan. The JVCEA hopes to eliminate pre-screenings for coins by March 2024. Changes seem to be a part of the term noted as the “Greenlist,” introduced by the JVCEA earlier this year. Faster listings were allowed for tokens meeting certain points.

Due to the efforts of the JVCEA to facilitate faster coin screenings, the number of cryptocurrencies currently trading in Japan has more than doubled over the past two years, amounting to 50. Amid concerns the loosened rules could lead to a saturation of lower-quality coins, the JVCEA said it would remain vigilant against any “inappropriate” coins and, if detected, press firms to cease offering them.

The move came after a formal discussion hosted by Japan’s Financial Services Agency (FSA). Which included representatives from the cryptocurrency industry and international regulators. The JVCEA has been put together to pass regulations and standards for cryptocurrency exchanges in Japan.

Japan crypto goals

These changes by the JVCEA follow the new path that the government in Japan looks towards cryptocurrencies. During his annual address to the country’s legislature earlier this month, Prime Minister Fumio Kishida prioritized the greater integration of web3 firms as part of his plan for reinvigorating Japan’s economy.

Similar sentiments earlier expressed by the government convinced Binance. The world’s largest cryptocurrency exchange, it was an appropriate time to renew its efforts to operate in the East Asian country. This came after failing to do so four years ago.

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Nicholas Pongratz
Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage.
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