If passed, the rule changes could make it easier for domestic exchanges to list more cryptocurrencies without having to go through a lengthy screening process.
The Japanese government is considering loosening the country’s stringent coin listing regulations.
The Japanese government is considering a proposal that would make it easier for registered cryptocurrency exchanges to list digital assets in the domestic retail trading market.
According to sources cited by Bloomberg, if the new rules are passed, exchanges that have registered with the Financial Services Agency (FSA) will be able to list specific assets without going through a lengthy screening process.
Digital assets that have been listed on at least three domestic exchanges for more than six months would be exempt from additional screening. If the proposal is approved, exchanges will find it easier to list Bitcoin (BTC) and Ether (ETH).
A final decision on the rule change has not yet been made.
Current listing rules necessitate that prospective coins go through an extensive screening process that can take up to six months to complete. Members of the Japan Virtual and Crypto Exchange Association (JVCEA) have complained that the stringent screening process has prevented Japan’s $1 trillion crypto industry from expanding significantly.
Members of the JVCEA have reportedly argued that changing the existing rules to allow for faster processing could increase Japanese participation in global cryptocurrency markets.
Coincheck and GMO Coin currently have 17 listed coins each, making them the largest exchanges in Japan in terms of the number of listings. Japanese exchanges have lagged far behind global exchanges, which have hundreds of coins listed, as in the case of top exchanges like Coinbase and Binance.
The proposed rules come at an interesting time, as Coinbase and FTX have both entered the competitive Japanese crypto market through subsidiaries that have registered crypto exchanges.