Japan to “Green-List” More Cryptocurrencies: What Does It Mean for Global Blockchain Adoption?
Great news for cryptocurrency investors in Japan: very soon, new regulations will allow them to trade a much larger number of digital currencies. It’s certainly a huge milestone for the adoption of blockchain technology in Japan, but it might also be a very important development for the global crypto market as well.
So far, the adoption of digital currencies was most advanced in developing countries. Surprisingly, the most technologically advanced countries in the world such as Japan were much less welcoming to cryptocurrencies, mostly due to very strict laws and regulations.
Up until now, the local regulations made it very hard for local crypto businesses such as exchanges to operate. While it is legal to trade crypto in Japan, and crypto exchanges are legal, the problem is something else — a very small number of supported coins and tokens.
Exchanges around the world often support hundreds of different cryptocurrencies. Meanwhile, due to the country’s laws, Japanese crypto exchanges often were able to offer their clients only about 10 of the most popular coins. Because of that, most Japanese crypto investors were forced to use foreign exchanges instead of local ones.
Now, it looks like the situation is finally starting to change. But why exactly are the changing crypto regulations in Japan meaningful for the global crypto adoption?
The new regulations will make it very easy for the Japan Virtual and Cryptoassets Exchange Association (JVCEA) to “green-list” new coins and tokens, effectively making them approved by the Japanese authorities. At first, the list of cryptocurrencies welcome in Japan will only include 18 popular coins such as Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).
However, the most important part of new regulations is the fact that the list will be able to be expanded automatically. Any crypto asset listed on at least three domestic exchanges for at least 6 months will be eligible for approval by JVCEA.
New crypto regulations in Japan were met with enthusiasm not only among Japanese crypto exchanges, but also abroad. With the new laws, it will be much easier for foreign exchanges like Binance and Coinbase to operate in Japan, and Coinbase specifically has been cited as a possible future member of the Japan Virtual and Cryptoassets Exchange Association.
The change of crypto regulations in Japan is not significant only for the region, but for the worldwide cryptocurrency market as well. It proves that the global blockchain adoption is progressing very fast, and that the world’s most technologically advanced economies are finally starting to fully embrace crypto.
The rapid pace of blockchain adoption means that projects like Grand Time are now more important than ever. Thanks to Grand Time, crypto beginners can be empowered to enter the crypto ecosystem in a safe and reliable manner.