The JVCEA is planning to relax Japan’s strict token listing regulations to facilitate the listing of new digital assets in the country.
According to a report According to Bloomberg, Japan's exchange and digital asset regulator, the Japan Virtual Currency Asset and Exchange Association (JVCEA), is considering reforming its current regulations on the inclusion of new tokens and digital assets to facilitate the listing of new products within the exchanges and regulated crypto exchange platform in the country.
The JVCEA, a self-regulatory organization recognized by Japan’s Financial Services Agency (FSA), requires a rigorous process, which can take up to more than 6 months, to approve and admit a new token; therefore, the creation of less strict regulations could potentially give a boost to the crypto industry, favoring its growth and development in Japan. According to the report, which cites people familiar with the matter, the JVCEA could give the green light to a dozen new tokens to be listed within regulated exchanges and trading platforms, opening new opportunities for its citizens and investors.
In a letter In a New Year’s letter published on January 1, JVCEA Chairman Satoshi Hasuo said the regulator was working to “further refine the assessment of cryptocurrencies.”
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JVCEA, cryptocurrencies and tokens authorized in Japan
Although Japan is one of the largest markets for the cryptocurrency industry today, moving almost $1 trillion in trading and exchange of cryptocurrencies and digital assets, cryptocurrencies and tokens listed on the country's exchanges must be previously approved and authorized by the JVCEA.
The strict rules that the regulator currently imposes for the admission of new tokens are applicable to all cryptocurrency projects, including the most popular and widely adopted ones. These regulations seek to guarantee the security of citizens and investors, it states on its website. However, the strictness of the admission process has limited the growth and development of the cryptocurrency industry in the country.
Japan and the FATF standards
In mid-2021, the Financial Action Task Force (FATF) singled out Japan as one of the countries with a robust regulatory framework for cryptocurrencies. According to the FATF, the regulations in force in the country help minimize the risks of financial crimes involving crypto assets.
On the other hand, Japan’s Financial Services Agency (FSA) intends to enforce the FATF “Travel Rule” in the crypto industry this 2022, as reported by the financial regulator since last year. The JVCEA is also expected to adopt the FATF rules by next April and introduce new reporting requirements for cryptocurrency and digital asset transactions above a certain threshold.
Enjin Coin Listing
In January 2021, the JVCEA approved the listing of Enjin Coin (ENJ) on the Japanese platform Coincheck. ENJ was the first gaming token authorized by the regulator in the country. At the time, Enjin developers affirmed that Enjin Coin’s approval and listing on Coincheck took an entire year of rigorous process, but that its listing on one of the largest platforms in the country was an important milestone for Enjin and for the adoption of its blockchain platform in Japan.
Currently, Coincheck only lists 17 cryptocurrencies and tokens.
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