The Japan Association of Cryptocurrency Exchanges plans to allow the listing of cryptocurrency assets without going through a preliminary verification procedure.
A Japanese government commission led by Prime Minister Fumio Kishida has criticized the current system for listing digital assets on the country’s crypto exchanges, stating that “the Cryptocurrency Exchange Association (JVCEA) is conducting an unacceptably long review.”
The basis for the government investigation into the activities of the JVCEA was the complaints of cryptocurrency companies, which reported that due to the too long screening procedure, the listing of tokens was delayed by six months or more. The government commission recommended that JVCEA “speed up the verification process without violating user rights protection requirements.”
In March, the Japan Cryptocurrency Exchange Association (JVCEA) informed the crypto community about the preparation of a “green list” of 18 widely accepted cryptocurrencies, which would eliminate the need for national exchanges to check crypto assets every time before listing.
According to unnamed JVCEA officials, the regulator will take into account the recommendations of the government commission, is ready to change the rules for the verification of crypto assets and focus on the control of digital currencies after the listing. However, the new rules will not apply to ICO projects. Also, the regulator can force exchanges to stop trading with problem crypto assets after the start of trading.
To become law, the new JVCEA crypto asset listing policy must be approved by the Financial Services Agency (FSA).
In early June, Japan’s Ministry of Justice announced amendments to its asset forfeiture law that would allow law enforcement to seize cryptocurrencies associated with criminal activity.
