Low cap cryptos may find home in Japan after new rules

Japan’s regulators will reportedly amend some rules to make it easier for exchanges to list new digital assets.

Crypto exchanges will soon be able to offer new virtual currencies without a laborious screening process. As per the plan of Virtual Currency Exchange Association of Japan (JVCEA).

Low-cap crypto benefits from listing limitations:

Once these changes take place, which could happen as early as December, crypto exchanges will be able to list the new cryptocurrencies. This includes low cap cryptos, within 30 days of submitting your initial valuation report on them. JVCEA vice-chairman Genki Oda said he expects this to be reduced to just 14 days by April next year. Exchanges are required to report every three months on events related to each of their listed coins.

There will be no change to the coins recently introduced in Japan. The JVCEA expects to end the pre-screening for the coins by March 2024. The change appears to be part of a term known as “greenlist” introduced by the JVCEA earlier this year. Faster listing was allowed for tokens that met certain points.

Due to JVCEA’s efforts to facilitate rapid coin screening, the number of cryptocurrencies currently trading in Japan has more than doubled in the past two years to 50. Amid concerns that loose regulations could lead to saturation of low-quality coins, the JVCEA said it would be alert to any “improper” coins and, if detected, would press firms to stop offering them.

The move comes after formal discussions held by the Financial Services Agency (FSA) of Japan. Including 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 target

These changes from the JVCEA follow a new path that the government in Japan is looking at towards cryptocurrencies. During his annual address to the country’s legislature earlier this month, Prime Minister Fumio Kishida prioritized greater integration of Web3 firms as part of his plan to revive Japan’s economy.

Similar sentiments expressed earlier by the government have reassured Binance. It was an opportune time to renew its efforts to operate in the East Asian country, the world’s largest cryptocurrency exchange. This came after failing to do so four years ago.

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