The financial regulator of Japan, the FSA, is preparing to introduce updated Initial Coin Offering (ICO) regulations to safeguard investors from fraud.
This is according to a report from local news outlet Jiji Press.
The report cites that business operators running ICOs will be mandated to register with Japan’s Financial Services Agency (FSA).
The agency is looking to submit bills modifying financial tools, exchanges and payment services laws to the ordinary parliamentary session that begins in January.
This move has been done “in view of a number of possibly fraudulent ICO cases abroad” as a way “to limit individuals’ investment in ICOs for better protecting them.”
An earlier report revealed that a whopping 80 percent of the ICOs done last year as scams.
The FSA Study Group on Virtual Currency Exchange industry recently concluded its tenth meeting to tackle ICOs. The tokens emitted during ICOs were categorized into three categories: virtual currencies without issuer, virtual currencies with issuer and tokens with issuers that are also obliged to distribute revenues.
The report stated that the first and second token categories are subject to settlement regulation such as the Financial Instruments and Exchange Act. The third of ICO tokens is subject to investment regulations such as the Financial Instruments and Exchange Act.
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