Japan Eases Crypto Regulations, Exempts 18 Exchanges From Pre-Screening29. December 2022
• Japanese regulators have started to review and ease crypto regulations in the country.
• The Financial Services Agency (FSA) has decided to put an end to the ban on the domestic distribution of foreign-issued stablecoins in the upcoming year.
• The Japan Virtual and Crypto Assets Exchange Association released a ‘green list’ of 18 accepted exchanges that shall be exempted from the pre-screening process.
Cryptocurrency regulations in Japan have been subject to some major changes in the recent months. The country has been attempting to decrease the complexity of regulations and laws, encouraging further liberalization of the industry. Financial authorities in Japan have been considering some new changes in order to make it easier for exchanges to list tokens.
The Financial Services Agency (FSA) is the integrated financial regulator of Japan, and has recently decided to put an end to the ban on the domestic distribution of foreign-issued stablecoins in the upcoming year. This new regulation will allow local exchanges to permit stablecoin trading such as USDT. The governing body of the crypto industry has notified its member companies about the new regulatory change, which is supposed to come into effect immediately. This will help these companies to list their coins a lot easier as they will not need to undergo a detailed screening process. However, if the tokens are new to the Japanese market, the screening process will be applied.
The Japan Virtual and Crypto Assets Exchange Association released a ‘green list’ of 18 accepted exchanges that shall be exempted from the pre-screening process. The association has 33 exchanges enrolled with it, and this list will make it easier for these accepted exchanges to list their tokens. This list is expected to be the first step towards further liberalization of the crypto industry in Japan.
The cryptocurrency industry has been grappling in recent times and is trying to recover from FTX’s collapse, which has shaken the broader market severely. Despite such tumultuous times, Japan has remained optimistic about crypto and has been easing the tough regulations. The aim of the country is to make it easier for exchanges to list tokens and encourage further liberalization of the industry. It is expected that these regulatory changes will help the crypto industry in Japan to recover from the recent losses and move towards further growth.