Japanese exchanges plan to replace the audit method for listing digital assets
09.06.2022
The Japan Digital Asset and Cryptocurrency Exchange Association (JVCEA) intends to simplify the rigorous audit process for listing emerging digital currencies following some concern expressed by the Japanese authorities regarding the procedure.” This is stated by Bloomberg News.
The JVCEA is responsible for carrying out the evaluation of digital assets that exchanges in the state intend to transfer. The organization needs about six months or more to approve a request for an exchange operation, a process that has caused discontent among the Japanese authorities. In late spring, a group formed by the authorities, which included the head of the Fumio Kishida, criticized the organization and made a statement about the need to "select criteria, not forgetting to protect customers."
State supervision bodies can change their approach and concentrate as much as possible on control over the currencies included in the list. It is most likely that the JVCEA will have the right to require exchanges to delist digital assets in case of any trouble. In the meantime, cryptocurrency exchanges in the Asian country should definitely notify the various plans for transfers of new cryptocurrencies, as this will help inform the association about the transferred digital assets.
Conclusion The JVCEA will provide Japan's cryptocurrency industry with more options by offering the people of Japan greater access to the domestic system. According to GMO Coin Inc, the largest digital asset exchange in the state lists only 21 digital assets. On the contrary, Coinbase, the state's new cyberspace user, offers over a hundred digital currencies in the US. However, making any changes to the rules will most likely not have an impact on initial coin offerings (ICOs), which, in any case, need to go through the verification process. According to sources, the self-governing organization will finalize its conclusion before the end of this year.
The Japanese state was the first to introduce new procedures that allow credit organizations and other financial institutions to issue stablecoins. The Japanese government has come up with a concrete definition of stablecoins and strict rules to protect retail investors from a Terra-like crash. In addition to this important legislation, local newspapers report that the Japanese Ministry of Justice is also looking into a proposal that would allow it to seize criminally obtained digital assets. This proposal is aimed at preventing the possibility of fraudsters in the state using the crypto industry for personal gain.
The JVCEA is responsible for carrying out the evaluation of digital assets that exchanges in the state intend to transfer. The organization needs about six months or more to approve a request for an exchange operation, a process that has caused discontent among the Japanese authorities. In late spring, a group formed by the authorities, which included the head of the Fumio Kishida, criticized the organization and made a statement about the need to "select criteria, not forgetting to protect customers."
State supervision bodies can change their approach and concentrate as much as possible on control over the currencies included in the list. It is most likely that the JVCEA will have the right to require exchanges to delist digital assets in case of any trouble. In the meantime, cryptocurrency exchanges in the Asian country should definitely notify the various plans for transfers of new cryptocurrencies, as this will help inform the association about the transferred digital assets.
Japanese cyberspace will become more liberal
Conclusion The JVCEA will provide Japan's cryptocurrency industry with more options by offering the people of Japan greater access to the domestic system. According to GMO Coin Inc, the largest digital asset exchange in the state lists only 21 digital assets. On the contrary, Coinbase, the state's new cyberspace user, offers over a hundred digital currencies in the US. However, making any changes to the rules will most likely not have an impact on initial coin offerings (ICOs), which, in any case, need to go through the verification process. According to sources, the self-governing organization will finalize its conclusion before the end of this year.
The Japanese state was the first to introduce new procedures that allow credit organizations and other financial institutions to issue stablecoins. The Japanese government has come up with a concrete definition of stablecoins and strict rules to protect retail investors from a Terra-like crash. In addition to this important legislation, local newspapers report that the Japanese Ministry of Justice is also looking into a proposal that would allow it to seize criminally obtained digital assets. This proposal is aimed at preventing the possibility of fraudsters in the state using the crypto industry for personal gain.