Done! Japan is defined with clear rules of the ICO

Done! Japan is defined with clear rules of the ICO

Japan is moving towards the legalization of primary offerings of coins, not turning to countries such as China and the United States that restrict the ICO because of the risks to investors.

In a Thursday report, the study group supported by the government, was set out basic guidelines for the further adoption of the ICO, including rules for the identification of investors and to prevent money laundering, monitor the implementation of projects that protect existing owners of capital and debt. Proposals will be reviewed by the financial services Agency of Japan (FSA) at the end of this month and may eventually become law.

Japan’s approach to the ICO can be called friendly and clearly different from the positions taken by China and South Korea, which last year banned the primary supply of coins, citing fraud and excessive speculation.

The report avoided a clear positioning ICO as securities:

“ICO is an innovative technology, so if we can implement the right principles and rules, they have the potential to become the new way of attracting funding,” said Kenji Harashima, the employee research Institute Mizuho.

The development of the document were Takuya Hirai, a member of the ruling liberal democratic party, was directly involved in creating the licensing systems of cryptocurrency exchanges, Yuzo Kano, the head of the largest of Japan’s bitFlyer, as well as experts from leading banks: Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc.

The report notes that issuers ICO should clearly state how the raised funds, profits and assets will be distributed among the owners of the tokens, stock and debt. Also from the organizers of the ICO required documentation for the planning and changes. Cryptocurrency exchanges to define standards to enable token-ICO in the listing, and insider trading should be prohibited.

“The research group proposes these principles as the minimum that must be done now”, — the report says. “To let ICO be safely used by a wide range of issuers and investors and to be well accepted in society, may require more specific regulations”.

As reported coinschedule.com the ICO became the preferred way to start blackney startups, and since the beginning of last year attracted $ 8.8 billion.

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