The Japan Crypto Exchange Association (JCVEA) is apparently working on a kind of “green list” that should make it easier for Japanese crypto exchanges to add new coins in the future. So far, the exchanges have had to submit a separate application to the JCVEA for each new listing and have it checked.
The Green List should simplify this process significantly in the future. If there is a coin or token on this list, any exchange can accept it without further verification. The preferred coins are said to include BTC, ETH, Ripple (XRP) and Litecoin (LTC). Apparently, there were increasing complaints from the industry that many traders in Japan would switch to foreign exchanges due to the limited supply. The vice-president of the JVCEA also commented on this:
Only a handful of crypto exchanges are profitable because it took so long to get cryptocurrencies approved. We have therefore seen a flight to foreign exchanges.
Genki Oda, source: Nike Asia
The example shows how hard the Japanese crypto exchanges have to struggle with the strict regulation Bitfyler clear. Loud coingecko the country’s largest exchange has just five cryptocurrencies on offer. competitor binance comes to over 80 different cryptocurrencies.
The US news agency had already announced in early February Bloomberg reports that the Japanese government is considering relaxing the strict listing requirements. According to this, the exchanges in Japan should soon be able to launch whole bundles of new coins.
Strict crypto regulation in Japan
Crypto regulation in Japan has gained significant momentum over the past year. Like the news agency Reuters reported, Japanese authorities had expressed strong concerns about the rapid growth of the crypto market. On July 8, 2021, a separate department was founded within the Japanese Financial Supervisory Authority (FSA), which should primarily deal with the regulation of the crypto market and its applications, such as the DeFi area.
Cryptocurrency transactions through exchanges in Japan rose loudly in the first 11 months of last year Bloomberg by 51 percent to 103 trillion yen ($900 billion), based on JVCEA data. Interest in cryptocurrencies is as great in Japan as it is in South Korea. There, in the last presidential election, the topic of crypto had played a decisive role for the first time. Both candidates had launched their own NFTs to finance their election campaigns. The election winner had also promised a gradual backtracking in terms of regulation.