Japan sets to simplify the process of listing new cryptocurrencies for approval to boost the trading rates of the country and catch up with the rest of the world when it comes to crypto transactions, according to the Japan Virtual and Crypto Assets Exchange Association (JVCEA).
The crypto body comprised of 31 exchanges plans to release a green list of 18 popular digital assets including Bitcoin (BTC), Ether (ETH), Tether (USDT) and Binance coins (BNC) by the end of March 2022. This aims to spare Japanese crypto exchanges from having to screen with JVCEA the digital coins they’ll add to the platform.
For assets to be added to the list, these coins should have at least been listed on one trading platform in the last 6 months.
‘The goal is to eliminate the time it takes to list a token and bring the industry closer to global standards,’ said Genki Oda, vice-chair of JVCEA according to a report released by Nikkei Asia.
‘Only a handful of crypto exchanges are profitable because it took such a long time to get cryptocurrencies approved. Users also flocked to overseas exchanges,’ Oda added.
This initiative aims to provide Japanese crypto investors with more options to trade on regulated exchanges within the country without having to flock to other platforms that do not have a license.
According to the report by Nikkei Asia, industry executives have noted that sophisticated traders have flocked foreign exchanges like Binance because of the lack of options for altcoins.
Currently, exchanges like Binance and Coinbase offers hundreds of digital coins listed on their portfolio that Japanese traders can access. In contrast to this, Japanese licensed crypto exchange GMO Coin, the largest exchange in Japan, only has 20 crypto assets on their list.
This initiavitve eliminates the time it takes to list a token and bring the industry to global standards, said Oda to a correspondence from Nikkei Asia.
Moreover, this pushes JVCEA to spend more resources approving new cryptocurrencies and initial coin offerings than spending time re-approving other coins for new exchanges in the country.
The approval rate of the JVCEA served as a roadblock in boosting crypto popularity in the country, especially since the lengthy screening process caused a pipeline of more than 80 applications waiting to be approved last October 2021 alone.
JVCEA was set up in 2018 to regulate crypto trading in Japan after a series of hacking incidents in the same year. The body is a self-regulating organisation that’s comprised of different crypto exchanges in the country as a way to prevent malicious hacking incidents in the Japanese crypto industry.
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