The Japanese Virtual Currency Exchange Association (JVCEA), a self-regulatory body for the Japanese crypto sector, is working to release a “green list” of 18 widely accepted cryptocurrencies and digital assets by the end of the month, according to a local Japanese news agency, Nikkei Asia.
Efforts to Simplify Processes and Accelerate Trading
The announcement comes in light of Japan’s efforts to simplify its processes and keep pace with the world in digital asset trading.
To sett forth with this goal, the JVCEA needed to approve of crypto exchanges one by one. As explained in an initial report, “…exchange(s) had to go through a lengthy screening process even for widely circulated tokens like Bitcoin and Ethereum, causing a large backlog of applications." In fact, by October, 2021, over 80 exchange applications were awaiting approval,”
To speed up their processes, the green list will allow cryptocurrency exchanges to avoid required screening procedures for specific coins. These include some of the highest volume assets such as Bitcoin, Ethereum, Ripple, and Litecoin.
In order to be included on the list, currencies need to have been listed on at least three exchanges, and for a minimum of six months on just one of those exchanges.
The GMO Coin, a Japanese exchange established in 2016, currently leads in listings with a current total of 20 cryptocurrencies, per a JVCEA official.
The largest exchange within the United States, Coinbase, began operations in Japan last year. As of March 2022, the exchange has listed a total of 160 different assets. In comparison, just 40 virtual currencies have been listed within Japanese exchanges.
History of the JVCEA
The JVCEA was established back in 2018 following growing concern over “hacking incidents that triggered intense scrutiny from regulators,” according to Nikkei. Adopting new measures will help reduce costs for the JVCEA and enhance resources, including quick approval of new digital assets along with initial coin and exchange offerings.