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.
- Hyundai Commercial Works With IBM for Blockchain Development 15 February 2019
- SEC Begins Review of NYSE Arca’s Bitcoin ETF Rule Change 15 February 2019
- Government Involvement Key to Crypto’s Success, Says Terry Duffy 15 February 2019
- Bradesco Closes Accounts of Local Crypto Exchange and Owners 15 February 2019
- JPMorgan Chase to Introduce “JPM Coin” 14 February 2019
Blockchain4 days ago
Santander Reaches $700 Million Deal to Use IBM’s Blockchain Tech
Cryptocurrency6 days ago
Crypto Could “Challenge Any Framework,” Says Financial Stability Board
Blockchain5 days ago
Blockchain Can Make Government “Incapable of Being Bribed” Says Overstock CEO
Cryptocurrency4 days ago
JPMorgan Chase to Introduce “JPM Coin”