Cryptocurrencies and Russia: These changes await the Japanese crypto exchanges

• Green list to simplify the approval of new cryptocurrencies

• Crypto regulation has been a key issue in Japan since last year

• Crypto exchange laws to be tightened to ensure enforcement of sanctions against Russia

Japan Crypto Exchange Association Works on “Green List”

As reported by Nikkei Asia, the Japanese crypto exchange association “JCVEA” is working to simplify the process for approving new cryptocurrencies. The aim is to increase the number of currencies traded in the country to catch up with the rest of the world. The Japan Virtual and Crypto Assets Exchange Association (JVCEA), a group of 31 exchanges, has planned to publish a list of 18 common cryptocurrencies. Previously, it was common for members to go through the association’s verification process in order to list a currency. However, this should no longer apply to the currencies on the green list. While only 40 cryptocurrencies are listed on Japanese exchanges, the US trading platform Coinbase, for example, counted a total of 139 cryptocurrencies at the end of 2021. “The 1.18 trillion yen ($9.8 billion) of cryptocurrencies held by users on Japanese exchanges in January was also a fraction of the $278 billion that Coinbase recorded in December,” according to Nikkei Asia.

The Green List should primarily include popular and widely used cryptocurrencies such as Bitcoin, Ethereum and Litecoin. The condition for making it onto this list is that the currency is listed on three or more exchanges, one of which has had the currency listed for at least six months. “Only a handful of crypto exchanges are profitable because it took so long for cryptocurrencies to be legalized. Users also flocked to foreign exchanges,” said Genki Oda, a vice chairman of the JVCEA. This new measure aims to provide JVCEA with more resources for the approval of new cryptocurrencies as well as initial coin and exchange offerings.

That’s how strict Japan’s crypto regulation is

Crypto regulation has been a hot topic in Japan for the past year. In July, Reuters news agency reported that Japan would step up diplomatic efforts to regulate digital currencies around the world. “Japan can no longer leave things unattended as global digital currency developments are progressing so rapidly,” an official told Reuters. Therefore, on July 8th, a separate department was founded within the Japanese Financial Supervisory Authority (FSA), which should primarily deal with the regulation of the crypto market and its applications.

Crypto exchange laws tightened due to sanctions against Russia

Now, Hirokazu Matsuno, the head of Japan’s cabinet secretariat, told a recent conference that Japan would tighten crypto exchange laws to ensure enforcement of sanctions against Russia. Accordingly, as Cointelegraph reports, the laws for international financial trading are to be amended in such a way that crypto exchanges, like banks, are to be obliged to verify and report transactions with Russian private individuals or companies.

E. Schmal/Redaktion finanzen.net

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