JVCEA Vice President: The pre-verification process will be cancelled only for some encryption tokens

In response to a Bloomberg report that the Japan Virtual Currency Exchange Association (JVCEA) is trying to remove all verification of crypto tokens by 2024, JVCEA Vice Chairman Genki Oda said this is not entirely accurate: "This does not mean that the pre-vetting process will be completely eliminated and JVCEA will continue to conduct certain checks." Currently, unless a Token is already listed on at least three trading platforms, it must go through a lengthy pre-vetting process before it is allowed to list on other trading platforms. Under the JVCEA's new rules, if an asset is already listed on one trading platform, other trading platforms do not need to go through a pre-vetting process to list the same asset. The rule, which has been shared with the cryptocurrency trading platforms that make up the self-regulatory body, does not apply to assets that are already listed on foreign trading platforms but not on Japanese ones. The relaxed auditing requirements also do not apply to tokens issued through IC0 and IE0, as well as crypto assets such as stablecoins. As previously reported by BlockBeats, on October 19, Bloomberg reported that Japan plans to further relax cryptocurrency regulations by simplifying the process of verifying coins on cryptocurrency trading platforms. The agency that governs cryptocurrency trading platforms plans to allow them to go online without a lengthy review process, unless the tokens are new to the Japanese market, according to the filing. The rule, which could come into effect as early as December, helps start-ups compete with established players by streamlining the listing process for tokens and lowering barriers to market entry. By March 2024, the Japan Virtual and Crypto Asset Trading Association may also remove pre-vetting for new tokens entering the country, as well as tokens issued through IC0 and IE0.