Monday, November 28, 2022

Just In: Japan to Soften Its Crypto Regulation, But There’s A Catch

The efforts of Prime Minister Fumio Kishida to ease the crypto regulation for token listing in Japan may finally be paying off. This follows as the country’s crypto regulator Japan Virtual and Crypto Assets Exchange Association (JVCEA) is set to make its existing crypto rules easier. 

According to the regulator, it will soften the usually-tedious screening process. Thereby, making it easier for crypto exchanges such as Binance, to get operational licenses to list virtual coins.

Interestingly, the news appears to be in contrast to a recent move by Japanese authorities to tighten its anti-money laundering AML rules

Softened Crypto Regulation Not For All Tokens

Meanwhile, according to a Bloomberg report, the softened rule would only affect tokens that are already in the Japanese market. New tokens trying to break into the market, will still have to undergo the full screening process before listing, while the rule itself will go into full effect by December.

It is expected that the new crypto regulation regime will make life easier for startup firms by reducing the usually-huge disparity between them and big players in the crypto industry. 

Also, the provisions of the new regulation will be to the delight of exchanges like Binance which has been trying to gain a crypto license in Japan for close to four years now.

Japan Aims to Boost Economy

By softening its stance on crypto generally, Japan will be hoping that the ease of access will cause more foreign companies to come into the country. There are also plans for non-fungible tokens (NFTs), as well as advancing the adoption of Web3.0. But ultimately, the overall end game is to help bolster economic growth in Japan.

Speaking about the development, Genki Oda, Vice Chairman of the JVCEA, said:

“We hope the latest measure will help revitalize Japan’s crypto assets market.”

New crypto rules can be expected in 2023. This is considering the various proposals to that effect, including those of reduced tax and generally softer regulations.

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