The move to simplify the listing process is part of a broader push to increase the number of digital assets that can be traded in the country.
The Japan Virtual and Crypto Assets Exchange Association (JVCEA) plans to release a “green list” of 18 popular crypto assets before the end of this month, according to reports. The group consists of 31 exchanges in the country.
The green list, which includes the high-volume tokens such as Bitcoin, Ethereum, XRP, and Litecoin, aims to allow them to avoid the arduous screening process that digital assets must go through in order to be listed for trading in Japan.
Overseas Exchanges Preferred
The listing process is much easier in other countries. Coinbase, for example, had 139 cryptocurrencies listed for trading at the end of 2021. By comparison, exchanges in Japan have only 40 tokens listed between them in total.
The report added that the $9.8 billion worth of cryptocurrency held by Japanese exchange customers in January was also a fraction of the $278 billion held by Coinbase clients.
Japan is losing out as many traders head for exchanges beyond its shores with hundreds of listings such as Binance. Genki Oda, the vice-chair of JVCEA, commented:
“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. The goal is to eliminate the time it takes to list a token and bring the industry closer to global standards.”
Sluggish token approvals have been a major hurdle to cryptocurrency adoption and trading in Japan. Each registered exchange has to undergo a lengthy screening process, even for widely traded tokens. More than 80 applications were still waiting to be approved late last year.
According to a JVCEA official, the new measure will free up the association to approve new cryptocurrencies, initial coin offerings (ICOs), and initial exchange offerings (IEOs).
On March 22, CryptoPotato reported that the Japanese exchange Coincheck announced plans to go public in the United States. The IPO will be via a special-purpose acquisition company (SPAC) through a partnership with the firm Thunder Bridge Capital Partners.
Earlier this month, Japan made assurances that its exchanges would comply with any sanctions imposed on Russia.