Japanese Government Considers Relaxing Coin Listing Rules to Boost Japan’s Participation in Crypto

The Japanese government is considering a proposal that would make it easier for registered cryptocurrency exchanges to list digital assets in the local retail market. According to Bloomberg sources, if the proposed laws are passed, exchanges that have registered with the Financial Services Agency (FSA) will be permitted to offer some assets without going through a lengthy screening procedure Additional screening would be waived for digital assets that have been listed on at least three domestic exchanges for more than six months. If the plan passes, exchanges will find it easier to list Bitcoin and Ethereum. A final decision on the regulation modification has yet to be made. Currently, coins must go through a lengthy screening procedure that can take up to six months to complete. According to members of the Japan Virtual and Crypto Exchange Association (JVCEA), the strict screening process has prevented the $1 trillion Japanese crypto businesses from growing significantly. Members of the JVCEA have allegedly claimed that altering existing laws to allow for faster processing might boost Japanese participation in global crypto markets. Coincheck and GMO Coin have listed 17 coins at the moment, making them the two largest exchanges in Japan by a number of listings. Japanese exchanges have lagged substantially behind global exchanges. In the case of leading exchanges like Coinbase and Binance, they have listed hundreds of coins. Coinbase and FTX have both entered the competitive Japanese crypto sector with subsidiaries registering crypto exchanges, thus the proposed guidelines come at an interesting moment.