The regulating organization for crypto assets in Japan, the Japan Virtual and Crypto Assets Exchange Association (1), published intentions to relax the country's crypto rules further.
What is to happen
According to Bloomberg, the organization intends to use a less stringent screening procedure for previously approved exchanges to offer virtual currency as early as this year. This would nevertheless apply to tokens already available on the Japanese market.
By March 2024, the authorities might completely do away with the time-consuming pre-screening procedure, even for coins that have just entered the market. According to remarks made by Genki Oda, vice president of the organization, this situation may also apply to tokens issued through initial crypto or exchange offers.
What's the purpose of this exercise?
With these new initiatives, Japanese officials seek to revitalize the local cryptocurrency ecosystem and make it simpler for entrepreneurs to get into the market. On October 14, the Japanese government's cabinet decided to update the legislation governing money laundering (2). This implies that companies that enable the exchange of cryptocurrency assets must divulge user information and alert the company owners. As the government updates rules and regulations, Japan has recently considered the expanding crypto scene. In August, officials declared they would consider adopting tax adjustments to keep crypto firms from fleeing.
Soon after, Japanese crypto organizations urged regulators to stop taxing paper gains. In a speech on October 3, Japanese Prime Minister Fumio Kishida declared that the nation would work to encourage the adoption of novel Web3 technology (3). He specifically referenced the Metaverse and the use of nonfungible tokens (NFTs). The Japanese government gave NFTs to local authorities as a prize for their hard work in September of this year.