Japanese Crypto Exchanges Want to Ditch Restricting Token Listing Protocols
Japanese crypto exchanges appear determined to take advantage of favorable political winds and expand the range of coins they trade on their platforms – although the national financial regulator has indicated that it will not let them have the final say on the matter.
As previously reported, the self-governing 31-member Japan Virtual and Cryptoassets Exchange Association (JVCEA) said it wanted to “streamline” the listing process for its exchange members. The body has already formulated an 18-coin strong “green list” of what it called “popular cryptocurrencies.”
At present, most crypto exchanges in Japan offer a very small selection of coins – sometimes fewer than 10. The listing process is currently painfully slow and can take months to complete – requiring copious documentation and hearings, even in cases where rival exchanges have already listed the same coin.
As Prime Minister Fumio Kishida has indicated that he is inclined to create a more crypto-friendly environment to spark a Web 3-related economic growth, the JVCEA now appears to feel the time is right to push ahead with the next stage of its plans, Bloomberg reported.
The media outlet added that the JVCEA may go a step further than creating a green list, and that it now wants to do away with the entire screening process.
Quoting unnamed sources close to the discussions, the media outlet writes that the self-regulatory body “would focus on policing the assets once they are listed instead of being involved in the listing process.”
The body also reportedly wants to examine the possibility of creating a protocol whereby the JVCEA could oblige its members to delist coins should problems crop up further down the line.
But the regulatory Financial Services Agency (FSA) appears set to have its own say in the matter. Bloomberg quoted an “official who asked not to be identified due to the agency’s policy” as stating that the agency “is aware the JVCEA is discussing a response to [the] Kishida administration’s call for a simpler screening process, but that it’s not clear what recommendations it will come up with and whether the FSA will approve them.”
Further, a “person with knowledge of the matter” added that legal requirements that force crypto exchanges to report their plans to list new tokens to the FSA “will likely remain even if the screening process gets dropped.” The self-regulating body refused to comment on the matter.
However, the JVCEA may find some support from the government. A panel that advises Kishida last month bemoaned the fact that the body “spends a long-time pre-screening” tokens, and advised “easing” the listing “criteria” – while also “being mindful of the need to protect users.”
Meanwhile, there are signs that exchanges are already gearing up for the new paradigm: GMO Coin, a long-running exchange and one of the first to be licensed by the FSA, is set to boost its offerings by listing six new coins, CoinPost reported, including OMG, tezos (XTZ), engin coin (ENJ), polkadot (DOT), and cosmos (ATOM). The first four of these tokens have been included on the JVCEA green list, while other Japanese exchanges were previously cleared to list ATOM by the JVCEA.
GMO Coin has also stated that it will list a grassroots football fan token – the FCR token that has been used as a crowdfunding source by the Okinawa-based Division 2 football club FC Ryukyu.
The new listings will take GMO’s roster from some 20 coins to 26.
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