Japanese Crypto Self-Regulatory Body to Loosen Token Vetting Process: Report
Japan has been looking to ease rules for crypto startups, with the government also considering corporate tax breaks for companies.
The Japan Crypto-Assets Association (JVCEA), a legally recognized self-regulatory body made up of crypto exchanges, is looking to get rid of a "lengthy" screening process that currently precedes the listing of tokens on local exchanges, Bloomberg reported Wednesday.
The measures could take effect as early as December, and would only make it easier for exchanges to list crypto assets that are already known to the Japanese market. By March 2024, the JVCEA could also "scrap pre-screenings" for tokens that are new to the market, according to the report.
Although Japan's financial watchdogs might sometimes be at odds with the JVCEA, a source familiar with the proceedings confirmed to CoinDesk that regulators could delegate matters like these to the industry association. The JVCEA has already alerted its members to the upcoming changes, the report said.
The measure also aligns with Japan's recent efforts to encourage crypto startups to stay in the country after high taxes prompted some startups to exit the market. The Japanese government is currently considering corporate tax breaks to ease the burden on crypto companies operating in the country.
The initiative to simplify token screening has been in the works since at least June, according to a previous report by Bloomberg Japan.
Aside from looking to unburden startups, Japan has also been investing in the metaverse, while on the other hand, the government is planning stronger anti-money laundering controls on the industry.
UPDATE (Oct. 21, 13:15 UTC): Clarifies that Bloomberg reported the rules will take effect by March 2024.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.