Low Cap Cryptos May Find Home in Japan After New Regulations

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

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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.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here

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