Japan To Announce New Cryptocurrency Regulations
December 3, 2018 2:08 pm
The Japanese news outlet Jiji has announced that the country’s financial regulators are all set to introduce new Initial Coin Offering (ICO) regulations. The new rules aim to protect investors from fraudulent activities.
The report said that startups that conduct ICOs should register with Japan’s Financial Services Agency (FSA). The agency is planning to submit bills revising financial instruments, exchanges and payment services laws to the ordinary parliamentary session which begins in January.
According to the reports, the action has been undertaken due to a number of fraudulent ICO cases abroad. It also aims to limit individuals’ investment in ICOs for better protection.
Last month, a study group on cryptocurrency exchange industry conducted its tenth meeting to discuss ICOs. The ICOs were categorized into three types such as cryptocurrencies without issuer, with issuer and tokens with issuers. These categories are also required to distribute revenues.
The report also included that the first and second token classifications are subject to the settlement of regulations such as the Financial Instruments and Exchange Act. The third section is subject to investment regulations such as the Financial Instruments and Exchange Act.
In January, Nishiawakura, a village with 1,500 people in Japan announced its plan to launch an Initial Coin Offering (ICOs) as a way of secure funding. Nishiawakura’s Token Economy Association announced that it would be issue Nishiawakura Coin (NAC).
Recently, Nippon Yusen K.K. (NYK), one of the most well-known Japanese shipping firm has also announced the plan of launching its own cryptocurrency for its crew members. The shipping company aims to ease the process of managing, sending and converting money into local currencies for marine workers.