Japan Crypto Regulator Proposes Relaxed Token Listing Policy

Japan’s cryptocurrency self-regulatory organization (SRO) proposes new policies to simply and fast track the listing of digital tokens by exchanges in the country. The amended rules could incentivize new market entries while increasing the cryptocurrency token offerings available to Japanese investors and traders.

Simpler Token Listing Procedures For Exchanges in Japan

According to a report from Bloomberg, the Japanese SRO tasked with screening crypto token listings on behalf of the country’s Financial Services Agency (FSA), has plans to introduce updated rules for crypto exchanges. The rules are reportedly geared towards eliminating protracted screening procedures when listing new coins.

The news about the proposed policies broke on Wednesday, February 2, 2022, following concerns from industry stakeholders regarding how complex listing rules have potentially reduced Japan’s influence in the global crypto market.

Currently, the existing procedure requires exchanges to submit individual applications for each token they intend to list. Afterward, screening periods could exceed 6 months with no guarantee of approval.

The lengthy process also applies to popular cryptos with massive trading volumes like Bitcoin (BTC) and Ethereum (ETH), according to representatives from the country’s crypto self-regulatory organization (SRO), the Japan Virtual and Crypto Asset Exchange Association (JVCEA).

Furthermore, exchanges aiming to establish a foothold in Japan’s $1 trillion crypto market have supposedly experienced difficulties due to stringent token listing policies. Popular exchange Coinbase offers five coins to traders in Japan through a local subsidiary. In comparison, over 100 tokens are available to its users in the US.

JVCEA now proposes a policy to allow digital service providers to list multiple coins simultaneously without a long waiting period. Also, the amended rules will facilitate listing tokens that are traded on at least three local exchanges. Cryptocurrencies traded in Japan for six months or more will also fall under the purview of the new rules, per the report. 

Indeed, introducing simpler rules for listing new coins could spur greater interest from global exchanges and investors, said officials from the JVCEA. The move also presents an opportunity to bolster Japan’s presence in the international digital asset industry.

The proposal is currently up for consideration and no concrete decision to implement the rules has been taken yet.

FSA Furthers Crypto Industry Standardization Mandate  

Japan’s Financial Services Agency has also called on the JVCEA to provide clarification on the entire digital currency listing procedure from application to approval. In response, the self-regulatory body proposed its new rules in a bid to provide a better token screening mechanism for exchanges. 

The association also emphasized its continued commitment to the development of reasonable regulatory oversight for the crypto trading market while encouraging innovation in Japan’s digital economy. 

As previously reported by crypto.news, the SRO was officially recognized by the FSA back in April 2020 as part of the latter’s move to regularize Japan’s burgeoning crypto market. Along with the JVCEA, the country’s top watchdog also approved the Japan Security Token Offering Association (JSTOA). 

In addition, the FSA previously announced plans to implement Financial Action Task Force (FATF) travel rules by mid-2022 in a bid to combat money laundering concerns in the country. Japan’s watchdog continues to install measures reportedly built to safeguard investors and ensure regulatory compliance throughout the country’s growing cryptocurrency market.