ICO News – After China, ICOs are about to be banned in Japan
October 26, 2017 11:14 am
ICO News – Japan has become a powerhouse in the Cryptocurrencies world by trading around 63% of the world’s Bitcoin approximately; Anyhow, the ban of Initial Coin Offering (ICO) by some other Asian countries have made the investors worry that Japan could follow the same.
ICOs are the basic form of crowdfunding. Nowadays companies are raising funds by using the cryptocurrencies through selling the crypto tokens to the investors. ICOs are now a go-to method for many companies since investors can benefit more directly against the traditional stock.
Japan now recognizes bitcoins as law tender, one of the largest champions of cryptocurrencies. Japan’s fundamentally different approach to Cryptocurrencies is the required savior for the ICOs. Kagayaki Kawabata, head of international business development, requests a list of tokens on the exchange after the Chinese ban.
Regulators may not be acceptable to ICOs
Kogi Higash, Co-founder of IndiesSquare does not convinced that Japan is the safe place for ICOs, as so many people believe. He trusts that many of the Japan’s industries, which are conservative and risk-averse natures could trigger the ban.
Since, Bitcoin and other crypto coins require regulations, China and South Korea banned ICO; though Japan is having a friendly approach towards cryptocurrencies is not such ICO-friendly. Higashi said. By adding that, regulators are only watching to see if it is good or bad and could start regulations in the future.
According to Forbes, Higashi is still optimistic that ICOs may become a revolutionary concept, by giving Japan a new start in attracting many ICO projects systematically. Companies around the world are already moving plans to Switzerland and Japan and helping both countries earn tax revenue.
Con-stars Shifting into ICOs
Fraud ICOs are already making the Japan government aware to ban them. ICOs are likely to move seriously to build digital currencies for risky pyramid projects. Initially, investors are buying coins and disposing them on ordinary investors is another worrying trend. Such a scenario opens less technically intelligent investors into exploitation.
Japan is playing a huge role in the growth of Cryptocurrencies and ICO markets by being invested highly in the recent valuation. The ban limits investor numbers and cryptocurrency exchanges, reducing liquidity in the ICO market and can be a step towards reducing the prices as well.
Until recently, only a small number of investors, who have large orders, made business volume in Japan. Now, less-technical users are expressing interest throughout the world, which could probably increase the number of investors. The ban will have the new crop of potential investors fearful.
It is unlikely that the ban may come into effect, even if there are big speculation, but not at all. Controllers are closely following the Cryptocurrency industry, showing openness to know about technology and how they are well controlled. Most likely to be optimistic. Additionally, growing hunger for the blockchain is growing rapidly and extending.
There are some rumors which describe that, After the Communist Congress Elections, Chinese ban could come into effect. The ban is believed to being pushed by the political persons, not even purposely after the election.