Japanese crypto exchanges are on an efficiency drive and plan to simplify the process of listing new coins to increase competition with foreign platforms.
The Japan Virtual and Crypto Assets Exchange Association (JVCEA) plans to release a ‘”green list” of 18 widely-accepted cryptocurrencies by the end of this month, reports Nikkei.
The green list will spare Japanese crypto exchanges from having to screen cryptocurrencies with the JVCEA each time before listing coins on their trading platforms. The digital assets included in the green list will no longer be subject to screening, the JVCEA said.
Tokens on the list could include Bitcoin, Ethereum, Tether, and BNB. The conditions for being added to the green list include being listed on three exchanges in Japan, with at least one trading platform having to list that digital asset for at least six months.
Japanese exchanges have far fewer crypto listings
The change is expected to speed up the process as Japanese exchanges had listed only around 40 cryptos by 2021, the report says.
By comparison, Kraken has listed around 110 cryptos, and Coinbase reportedly has 139 listings.
Genki Oda, a vice-chair of JVCEA told Nikkei Asia: “The goal is to eliminate the time it takes to list a token and bring the industry closer to global standards.”
Meanwhile, Binance, the largest global exchange by volume, would dwarf the trade on domestic exchanges. “The 1.18 trillion yen ($9.8 billion) worth of cryptocurrency held by users at Japanese exchanges was a fraction of Coinbase’s $278 billion,” the report said.
“Only a handful of crypto exchanges are profitable because it took such a long time to get cryptocurrencies approved. Users also flocked to overseas exchanges,” Oda said.
GMO Coin, with close to 20 cryptocurrencies, is considered the largest according to a JVCEA official. Meanwhile, another Japanese cryptocurrency and digital asset exchange, Coincheck, is set to go public on the Nasdaq by the end of the year.
Japan is considered a crucial crypto market in Asia. It got in on the game early by including virtual currency under its payments framework back in Oct 2020.