Japan has decided to smooth out the process of giving a green signal to new cryptocurrency listings. This simplification aims to elevate and strengthen the overall stance of the crypto market in Japan.
More cryptocurrency listings would start operating in the country contrary to how the situation has been in the past, which would promote healthy competition. Quite a few cryptocurrencies would be exempt from scrutiny, as stated by The Japan Virtual and Crypto Assets Exchange Association (JVCEA).
The Japan Virtual and Crypto Assets Exchange Association, which is a group of 31 exchanges, is reportedly set to release the list of 18 cryptocurrencies that would not be inspected in the month of March. Previously, all members had to go through a screening process at the association, cryptocurrencies on this so-called “green list” will not undergo screening.
Major cryptocurrencies could get on the “green list”
The vice president of JVCEA has expressed concern that it takes quite some time to list a particular token, which is why Japan needs to catch up to the pace globally.
“Only a handful of crypto exchanges are profitable because it took so long to get cryptocurrencies approved. Users also flocked to foreign exchanges,” said Genki Oda, VP of JVCEA.
It has been reported that traders have largely opted for unlicensed exchanges such as Binance simply because there is a shortage of other viable options.
The “green list” may also include top cryptocurrencies such as Bitcoin, Ethereum, XRP, and Litecoin. These coins are only approved to appear on the list if the currencies are listed on at least three exchanges, provided they have been listed on an exchange for at least six months.
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GMO Coin Remains the Largest Cryptocurrency Exchange in Japan
With the maximum number of listings, GMO Coin is still the largest Japanese crypto exchange. GMO Coin currently handles a total of 20 cryptocurrencies. This number is remarkably low compared to the global figures.
For example, Binance, in their list of traded coins, is known to support more than 80 cryptocurrencies as of March this year. Coinbase, the largest cryptocurrency exchange in the US, currently holds 160 cryptocurrencies. Coinbase started operations in Japan last year.
Compared to the aforementioned cryptocurrency exchanges, Japan just stopped crypto exchanges that together only supported 40 cryptocurrencies. Certain prominent exchanges like BitFlyer, for example, are reportedly only trading five cryptocurrencies, according to CoinGecko.
JVCEA has previously mentioned that Japan’s strict stance on cryptocurrencies has prevented the industry from amplifying its full potential. The Japanese cryptocurrency industry had the potential to become worth a trillion. This latest easing should help traders gain some confidence in the Japanese cryptocurrency market.
JVCEA has also acted as a self-regulatory body responsible for conducting investigations related to hacking incidents. Due to such incidents in the past, Japan had tightened its regulations around cryptocurrencies.
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