According to a source acquired by Bloomberg, the Japan Virtual and Crypto Asset Exchange Association (JVCEA) – the country’s watchdog responsible for overseeing digital coin listings on local exchanges – will loosen its screening process.
No more token screening
From people with knowledge of the matter, the self-regulated body – the JVCEA – will move away from its current stance of focusing on the listing process. Instead, it will oversee the industry “by controlling the assets after they are listed.”
For member exchanges on whose platforms the coins in question are traded, they may be required to remove them if there is a problem. In addition, business locations will still be required by law to report any listing plans to regulators, notwithstanding the removal of the screening process.
The source also indicated that the new measures would not apply to initial coin offerings (ICOs), and a final decision is expected by the end of the year.
The new adjusted policy reportedly came after Prime Minister Fumio Kishida’s administration criticized the current screening process, which had prevented local crypto firms from thriving due to ineffective policies. However, he added that the association should stick to the principles of user safety.
Earlier this year, the JVCEA announced a new policy that allowed member exchanges to add a selection of “green-listed” cryptocurrencies without screening. Previously, the listing process could take six months or more – a time-consuming phase crypto firms believed hindered the growth of the industry.
Offering over 100 assets to its clients, GMO Coin Inc – one of the largest crypto exchanges in Japan – only holds 21 cryptocurrencies, compared to US-based exchanges such as Coinbase Global. With very few coins listed on their platforms, local exchanges faced difficulty in acquiring customers amid fierce competition with their foreign counterparts.
Regulations on stable coins
In the wake of Terra’s debacle, Japan’s parliament reportedly passed legislation that would place stablecoins under increased scrutiny, requiring such assets to be classified as the country’s national currency (yen) or any other legal tender. Will be
The move was seen as a response to the disaster of the mismanaged algorithmic stablecoin Terra, which has no underlying assets tied to fiat currencies. Japanese officials recognized that such an initiative could improve user security.
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