Promising future for Jasmy to be listed in the world’s most compliant white list of Japan, with the effect of great significance
Q5 Can you tell us about the specific application and review process?
The previous chart has a general process, as follows:
- The exchange conducts a comprehensive review of the encrypted assets (a Japanese term, which means “crypto asset”) for which the listing application is submitted. The exchange will sort out all kinds of detailed information of the approved encrypted assets and submit them to Japan Virtual and Crypto assets Exchange Association (JVCEA) for secondary review.
- JVCEA will conduct a second review of the submitted information according to relevant industry regulations and association standards, and confirm that the encrypted assets are eligible for listing
- JVCEA will seek advice of Japan Financial Services Agency
- Japan Financial Services Agency conducts final review
- After filing in the white list, wait for the official listing
The new token listing process is not particularly complicated, but it not only takes a long time, but also is uncertain whether it will be approved by the Financial Services Agency. There is no legal provision that the listing of new token in Japan must be subject to the final review of the Financial Services Agency, but the truth is just the opposite.
First of all, it is necessary to inform the Financial Services Agency in advance and submit all relevant information. Then, the Financial Services Agency will comprehensively review all kinds of potential risks of newly issued encrypted assets from the perspective of protecting investment users, and evaluate the appropriateness and safety of the assets.
The Japanese government should be responsible to the majority of investment users, including determining whether there is a security risk and whether it causes losses to investors. For the above risk control purposes, the Financial Services Agency will strictly evaluate the listing of a new encrypted asset in Japan in combination with a third-party institution. Financial Services Agency has also prepared the Application and Documentation Guidelines with hundreds of pages.
The Financial Services Agency mainly reviews the new tokens from the following aspects:
Review emphasis on the appropriateness and security of encrypted assets
a. Composition mechanism and principle of encrypted assets
b. Predicted and envisioned application scenarios
c. Market circulation situation, especially the circulation quantity and release rate, needs to be reviewed
d. Potential risks, such as system loopholes, against which whether there is a perfect crisis management mechanism
Review method
a. A large amount of information and interview data provided by applicants
b. User complaints and information usage, whether there are perfect measures to protect users’ rights and interests, and measures to safely manage user information, etc.
c. Evaluation results of the third-party Japan Virtual and Crypto assets Exchange Association (JVCEA), which was recognized by the Japanese government
d. Declaration/due diligence of the current situation, whether the tokens of users are kept separately, and whether the management system has perfect measures to monitor and deal with illegal money laundering and prevent providing funds to terrorist organizations
After completing the above items and successfully passing the review of JVCEA and the Financial Services Agency, applicants can be included in the white list of the Financial Services Agency and listed in Japan.
From the above process and measures, we can see that Japan is strict in supervision and review of the new token listing. This may be unfavorable to the issuing company of new token, but from the perspective of protecting a group of investment users, it just shows that the market of encrypted assets in Japan is low in risk, high in safety factor and trustworthy.(* Note: encrypted asset is a Japanese term, which means “crypto asset”)
Q6 What impact does Japan’s stringent regulation have on the types of Japanese tokens?
Nowadays, the types of encrypted assets in Japan are obviously decreasing. According to the public data of Japan’s Financial Services Agency, since the birth of Bitcoin more than ten years ago, only 29 types of encrypted assets remained in Japan’s white list.
After 2020, only 9 new tokens have been approved to be listed in the white list, all of which are the tokens issued firstly overseas, and no domestic tokens issued firstly listed, which shows the strictness.
Therefore, when the token investors learned that JASMY would be the first to be successfully listed in the white list, JASMY has received unprecedented attention.
Q7 If JASMY is expected to be listed in the white list, will it have any impact on the industry market?
Japan leads the world in the maturity of the encrypted asset (a Japanese term, which means “crypto asset”) market. Jasmy is expected to be listed in the world’s most compliant white list of Japan, which is a very good signal for token investors.
Many big names in the token circle have said that the only threshold for investment in crypto assets is cognition! The change of crypto assets and the entire computing power world does not require the efforts of investors, but each investor needs it to change his own class and wealth. All you can do is to keep up with it, which is also the general trend of future development.
Nowadays, the crypto asset market is just at the beginning, with great prospects, unlimited value and a bright future. As long as investors abide by principles of “safety” and “steadiness”, they will gain something. Maybe the next myth of wealth creation is you. Jasmy platform is willing to become a new security fortress for global token investors!
Q8 Compared with other countries, there are only 29 types of tokens circulating in the Japanese market, why does Japan emphasize the compliance of tokens so much? Just as you mentioned before, many Japanese investors go to overseas exchanges to buy tokens, which shows that there is a great demand for the types of tokens, why does Japan relax its standards?
Thank you for your question. First of all, let’s talk about the wording. For compliant tokens in Japan, they are collectively referred to as “encrypted asset” (a Japanese term, which means “crypto asset”). Those that circulate outside the Japanese market and that circulated in Japan but are not compliant are referred to as “digital currency” or “hypothetical currency”.
Since the introduction of the white list policy by the Financial Services Agency in 2017, those non-compliant digital currency and operating companies have been disqualified or withdrawn from the Japanese market.
The Japanese government emphasizes compliance for the following two reasons:
A: The Japanese government still hopes to build an orderly, healthy and mature market with the interests of investors and users as the core, either for stocks or encrypted assets. Warren Buffett, the stock god, did not like the Japanese stock market and was not willing to invest because he could not get a high return as an investor due to the low return on equity of Japanese companies.
John Vail, chief global strategist of Nikko Asset Management in Japan, said, “To some extent, overseas investors are brainwashed to think that Japan’s stability means no development, which is wrong. All his goals seem to be heading in the right direction.” Therefore, now the stock god has begun to reinvest in the Japanese stock market because he may also realize that a healthy and orderly market is the future trend.
The same is true of the token market. Recently, countries all over the world have strengthened their regulations and controls on encrypted assets, which also shows that they agree with Japan’s idea that only under regulations and supervision, healthy investment environment and market, can the market and finance develop better.
B: In the years when encrypted asset market was just emerging, there were many cases of token theft and various fraud cases in the Japanese market. Therefore, the Japanese government has given priority to compliance, protecting the interests of investors first.
Moreover, after new token listing, the Japan’s Financial Services Agency closely monitors the exchange and related crypto asset operation market to avoid risks.
At present, Japan has not lifted the ban on IEO, ETF and DeFi, which have higher risks.
