Token listing on crypto exchanges in Japan could soon become a lot swifter than it currently is, reports say.
The idea is that exchanges may not have to wait too long before listing a digital token due to an equally very long screening process.
According to a report Bloomberg published on Wednesday, the Japanese government has expressed its dissatisfaction with the current framework and is in talks with the Japan Virtual and Crypto Assets Exchange Association (JVCEA) over the possibility of overhauling it.
JVCEA is a self-regulatory body tasked with supervising digital asset exchanges in the country. In May, the government criticized it for what is reportedly a slow “pre-screening” of crypto tokens.
Consumer protection key
Reportedly, JVCEA is looking at the possibility of allowing exchanges to list some tokens then following that up with a review. The deliberations, whose final report is expected by the end of the year, will also consider the scenario of having exchanges delist tokens after post-listing screening.
Notably, Prime Minister Fumio Kishida’s administration believes the process can be hastened even as measures are taken to ensure consumer protection.
This follows the collapse of Terra (LUNA) last month, which also involved the TerraUSD (UST) – a stablecoin that lost its peg to the US dollar to catalyze further losses across the market.
It’s this same need to protect users that has seen South Korean policymakers push for token listing guidelines for the country’s crypto exchanges. Lawmakers want exchanges to implement a self-regulatory system on listing and delisting of tokens, with the main objective being to public protection.
It is estimated 280,000 South Koreans were impacted by the LUNA collapse.