The Japanese government is considering a proposal to make it easier for registered cryptocurrency exchanges to list digital assets on the local retail market.
Sources cited by Bloomerg said that if the new rules are passed, exchanges registered with the Financial Services Agency (FSA) will be able to list certain assets without going through a lengthy due diligence process.
Digital assets listed for more than six months on at least three domestic exchanges will be exempt from additional verification. For example, it will be easier for exchanges to list bitcoin (BTC) and ethereum (ETH) if the offer is accepted.
There is no final decision on changing the rules yet.
The current listing rules require potential coins to go through an extensive verification process that can take over six months. Members of the Japan Virtual and Cryptocurrency Exchange Association (JVCEA) have complained that a rigorous verification process has prevented the $1 trillion Japanese cryptocurrency industry from growing significantly.
Members of the JVCEA have reportedly argued that changing existing rules to allow for expedient processing could increase Japan’s participation in global cryptocurrency markets.
As of now, Coincheck and GMO Coin have 17 listed coins each, making them the largest exchanges in Japan in terms of listings. Japanese exchanges lag far behind global exchanges with coins listed by the hundreds in the case of top exchanges such as Coinbase and Binance.
The proposed rules come at an interesting time, with both Coinbase and FTX entering the competitive Japanese crypto market with subsidiaries listing crypto exchanges.
Related: Major Cryptocurrency Exchanges Watching Asian Market Amid Growing Regulatory Clarity
On February 2, Sam Bankman-Fried’s FTX exchange acquired Liquid Group, the operator of Quoine, a Japanese-listed cryptocurrency exchange. Ultimately, Quoine “integrates FTX’s existing products and services into its own offerings.”
Last August, Coinbase partnered with Mitsubishi UFJ Financial Group (MUFG) to open a branch of its exchange. The partnership with MUFG provides users with fiat entry and exit.
The Japanese government is considering a proposal to make it easier for registered cryptocurrency exchanges to list digital assets on the local retail market.
Sources cited by Bloomerg said that if the new rules are passed, exchanges registered with the Financial Services Agency (FSA) will be able to list certain assets without going through a lengthy due diligence process.
Digital assets listed for more than six months on at least three domestic exchanges will be exempt from additional verification. For example, it will be easier for exchanges to list bitcoin (BTC) and ethereum (ETH) if the offer is accepted.
There is no final decision on changing the rules yet.
The current listing rules require potential coins to go through an extensive verification process that can take over six months. Members of the Japan Virtual and Cryptocurrency Exchange Association (JVCEA) have complained that a rigorous verification process has prevented the $1 trillion Japanese cryptocurrency industry from growing significantly.
Members of the JVCEA have reportedly argued that changing existing rules to allow for expedient processing could increase Japan’s participation in global cryptocurrency markets.
As of now, Coincheck and GMO Coin have 17 listed coins each, making them the largest exchanges in Japan in terms of listings. Japanese exchanges lag far behind global exchanges with coins listed by the hundreds in the case of top exchanges such as Coinbase and Binance.
The proposed rules come at an interesting time, with both Coinbase and FTX entering the competitive Japanese crypto market with subsidiaries listing crypto exchanges.
Related: Major Cryptocurrency Exchanges Watching Asian Market Amid Growing Regulatory Clarity
On February 2, Sam Bankman-Fried’s FTX exchange acquired Liquid Group, the operator of Quoine, a Japanese-listed cryptocurrency exchange. Ultimately, Quoine “integrates FTX’s existing products and services into its own offerings.”
Last August, Coinbase partnered with Mitsubishi UFJ Financial Group (MUFG) to open a branch of its exchange. The partnership with MUFG provides users with fiat entry and exit.
