The cryptocurrency assets governing body in Japan, the Virtual and Cryptocurrency Assets Exchange Association has recently released a document related to cryptocurrencies.

In the released document, the regulatory authority has shared plans of going easy on cryptocurrency listings and other laws.

Japanese Wants to Go Easy on Crypto

According to the new document released by the regulator, they have plans to ease the laws governing cryptocurrencies.

This means that the country is now planning to change the way it is dealing with cryptocurrencies and their adoption. The plan seems to be to lower the strictness surrounding crypto listings.

This way, the country is making things easier for cryptocurrency companies to operate and provide services without facing any difficulties.

Why Japan Grew Strict on Crypto?

In the past, Japan was welcoming towards cryptocurrencies and as a result, the crypto industry thrived in the country.

However, in the past couple of years, Japan changed its stance towards cryptocurrencies, as it wanted to regulate them with strict laws.

The country had grown highly concerned due to the growing illicit activities involving cryptocurrencies. These activities included fraud, swindles, and money laundering.

Therefore, the country demonstrated strong resistance against such activities and dealt with growing illicit activities with strict regulatory reforms.

Japan to Loosen the Screening Program

Now, with most of the cryptocurrency industry in the country under control, Japan is ready to loosen the strictness.

Japan has announced that from December 2022, they want to make changes to the screening process for cryptocurrencies.

The screening program involves the cryptocurrency exchanges already authorized to operate in Japan. In the past, these exchanges had to go through strict screening processes for token listings.

Now, the government wants to introduce a process that would be flexible and convenient for the already authorized crypto exchanges.

However, there is a catch, and that is the screening process, which would be easier for the tokens that are already circulating in the Japanese markets.

Prediction for 2024

According to many market experts, Japan may be loosening the screening process for the time being but it may make a major announcement in 2024.

From the looks of it, Japan wants to test exactly how things work out as it lowers the restriction level involving the screening process.

If everything goes smoothly, Japan may proceed with fully abolishing the screening process for the new tokens. These tokens would be the ones that are new to the market.

However, Japan may wait a year before it proceeds with the abolishment of the pre-screening process. The experts predict that it would not be until March 2024 that the process is gotten rid of.

This would prove to be extremely beneficial for cryptocurrency exchanges to enlist cryptocurrency exchanges on their platforms. It would eventually increase the global demand for cryptocurrencies.