Regulators in Japan may be more inclined to approve new virtual currencies for trading if they have greater financial transparency and are not involved with gambling dapps.
According to a new report by Xangle Research on Japanese digital asset regulations, the country’s financial watchdog, the Financial Services Agency (FSA), specifically says that crypto-currency companies can be approved if they do not support decentralized applications (Dapps) with gambling or anonymous features.
In particular, Xangle named Quantum (QTUM), the newly available crypt currency for trading on the Japanese crypt currency exchange Coincheck, as it meets three essential requirements of the country’s self-regulatory group, the Japan Crypto Exchange Agency (JVCEA). According to the report, QTUM was transparent in its responses to the JVCEA, had sufficient liquidity to trade on the major exchanges and was not involved in „gambling or casino games“.
Other crypto currencies, such as Brave’s Basic Attention Token (BAT) and Huobi Token (HT), listed on GMO Coin and Bitcoin System Huobi Japan, respectively, were still named as white-listed projects by regulators who had „demonstrated financial stability and met national standards. The Xangle report stated that BAT, HT and QTUM had achieved financial transparency, regulatory compliance and technical stability.
Japan has strict requirements for crypto currencies
A Qtum representative said in an interview with Xangle that their approval of the FSA may be due to the fact that they demonstrate that they have reliable technology in their three year history and that they have highly decentralized and transparent networks.
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Qtum had wanted to enter the Japanese market since 2017, but the FSA „was not very open to adding new tokens“ to its white list, according to the representative. However, with the changes to the financial regulator’s regulations approved in 2019, more crypto-currency projects have been approved as the stricter regulations begin to take effect.
„The Japanese regulations for listing are some of the most stringent requirements in the world. These new listings show that Japanese regulators are open-minded about cryptomoney, but they are also very strict about listing rules to protect investors.