Japanese Authorities Plan To Introduce New Rules For ICO
The Financial Services Agency of Japan (FSA) will introduce new standards for ICOs, Jiji Press reports.
According to some sources, regulations regarding ICOs are introduced to secure depositors from illegal activities during their organization, especially against the background of many cases of fraud abroad.
In the summer of 2018, a study conducted by Statis Group revealed that more than 80% of the ICOs, organized in 2017, were fraudulent.
In accordance with the new regulation, token issuers will need to register with the FSA. The Agency intends to submit draft laws on financial instruments, crypto exchanges, and payment services to the next meeting of parliament, which will be held in January 2019.
Regulators in Japan pay a lot of attention to the crypto sphere. The FSA research group organized the tenth meeting on ICO in November 2018. The specialists decided to divide the ICO into several groups: cryptocurrency without an issuer, cryptocurrency with an issuer, and tokens with issuers that should distribute profits.
In October 2018, Japan’s FSA declared a crypto industry structure with its own regulation. The local Virtual Currency Exchange Association has the right to control and impose sanctions on crypto exchanges that do not follow the established rules.