Japan’s crypto regulator intends to ease listing rules for virtual coins in an effort to lure crypto startups and help them compete with major players, according to Bloomberg. The regulator wants to make the review process for listing tokens easier for crypto bourses and new rules could come into effect in December.

Japan’s Relaxed Crypto Listing Rules Could Come as Soon as December

Japan Virtual and Crypto assets Exchange Association, the country’s cryptocurrency regulator, is looking to lure more crypto startups by easing the crypto listing process, Bloomberg News reports. The new, eased rules could take effect as soon as December 2022, according to documents seen by Bloomberg.

The move aims to help crypto startups compete with industry leaders by easing the review process of listing virtual coins and making it easier for them to enter the market. This only applies to cryptocurrencies that are not new to the Japanese market.

Furthermore, the regulator could even drop the pre-screenings for tokens new to Japan’s market by March 2024, and for cryptocurrencies issued via initial coin offerings (ICOs), said the vice president of software company Remixpoint. “We hope the latest measure will help revitalize Japan’s crypto assets market,” he added.

Japanese Regulators Make a U-turn to Support Economic Growth by Nurturing Crypto Startups

The easing of crypto listing rules marks a sharp U-turn by Japan’s regulators, which tightened crypto regulations a few years ago. Now, the world’s largest crypto exchange Binance is also looking to return to Japan four years after it exited the market.

The crypto industry has been battered by headwinds and hacks over the past year, sending many major crypto firms like Celsius Network and Three Arrows Capital (3AC) into liquidation. As a result, numerous have tightened crypto regulations recently including Singapore, one of the most crypto-friendly states.

Japan’s change in stance comes as a part of Prime Minister Fumio Kishida’s plan to revitalize the country’s economy under a new growth plan called “New Capitalism,” which also seeks to support the growth of local web3 firms. Earlier this year, Japan’s financial regulator proposed easing corporate tax rules for crypto and stock investors to facilitate economic expansion.

Once the eased crypto rules take effect, exchanges will be able to “list virtual coins within 30 days of reporting their listing plan and coin assessments,” Bloomberg report continues. Exchanges will be required to report every three months to the crypto regulator about new developments associated with the listed tokens.

This article originally appeared on The Tokenist

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