The Japanese Association of Cryptocurrency Exchanges (JVCEA) plans to simplify the process of listing digital assets on trading platforms.
According to the current rules, before new trading pairs with a coin are added, companies must complete verification, which takes at least six months. As a result, new exchanges find it difficult to compete in the market. For instance, Coinbase started offering services to Japanese residents in August 2021 and only listed five cryptos. And Coincheck, which was founded in 2012, offers customers more than 100 digital assets.
The JVCEA intends to allow exchanges to immediately integrate on their platforms the in-demand virtual currencies that are sold on at least three Japanese exchanges over a period of six or more months. Around 15 digital assets fall into this category, in particular, Bitcoin and Ethereum (ETH).
For the first 11 months of 2021, the trading volume on Japanese cryptocurrency exchanges rose by 51% and reached $900 billion. According to JVCEA estimates, the turnover of digital assets over the past year amounted to $1 trillion.