• Japan’s Virtual and Crypto assets Exchange Association (JVCEA) has streamlined token listing on local exchanges to make it easier for tokens previously traded in any Japan Exchange to list on another exchange.
• The move is intended to open up the industry and encourage wider adoption of crypto in the country.
• Japan’s Prime Minister, Fumio Kishida, has voiced his support for different kinds of digital finance, web3 adoption, and non-fungible tokens (NFTs), and has indicated that by 2023 he may liaise with the JVCEA to consider a possible relaxation of tax rates on crypto profits.
In a bid to simplify the listing process for tokens, Japan’s Virtual and Crypto assets Exchange Association (JVCEA) has updated its regulations. This move by JVCEA is aimed at opening up the industry and encouraging wider adoption of crypto in the country.
The new token streamlining program ensures that coins previously traded in any Japan Exchange will not be subjected to a stringent pre-listing process if it wants to list on another Japan-based Exchange. However, the easing of crypto listing regulations does not help new tokens aiming to make inroads into Japan’s local market. This means new tokens will still be subjected to existing processes to meet JVCEA standards and guidelines.
The move was prompted by the epic failure of the Sam Bankman-Fried-led FTX Exchange. Genki Oda, vice chairman of the JVCEA, has confirmed that by March 2024, the controlling authority might completely discontinue the screening process in order to lower the entry barrier for smaller crypto firms and bring Japan up to par with its South Korean neighbor, which currently has 650 coins while Japan only has 50.
Japan’s Prime Minister, Fumio Kishida, has also shown great support for different kinds of digital finance, web3 adoption, and non-fungible tokens (NFTs). He has reiterated his desire to reinvigorate the economy through “new capitalism” measures that connect with his favorable stance toward crypto. Fumio has indicated that by 2023 he might liaise with the JVCEA to consider a possible relaxation of tax rates on crypto profits.
The new token streamlining program is expected to be beneficial for the local crypto industry. It will benefit not only existing tokens but also new tokens looking to enter Japan’s local market. This will enable more tokens to be listed on Japanese exchanges, allowing the crypto industry to grow and mature.
The Japanese government’s support of the crypto industry should also provide a major boost to the sector. It is hoped that the latest developments will help the crypto industry to become more accessible to the wider public. This could lead to an increase in the number of people investing in cryptocurrency and taking advantage of the many opportunities available.