The guidelines for the ICO legalization are presented in Japan

The Japan Study Group, which analyzes the risks and benefits of cryptocurrencies, presented a list of basic principles for the regulation and legalization of ICOs in Japan. The document sets out the requirements for the identification of an investor, ways to combat money laundering, rules for protecting securities and debt obligations holders, etc.

"ICOs are groundbreaking technology, so if we can implement good principles and rules, they have the potential to become a new way to raise funding," said Kenji Harashima, a researcher at the Mizuho Research Institute.

According to these guidelines, the issuers of tokens will have to provide information on how the attracted funds, profits, and assets will be distributed among the owners of the assets. Cryptocurrency exchanges will be required to adopt single standards for listing ICOs, as well as insider trading will be banned.

The proposed principles will be forwarded to the Financial Services Agency of Japan for consideration. In case of these rules are approved by the FSA, they may become a full-fledged law legalizing the ICO trading.

The research team included: Toshifumi Kokubun, professor at Tama Graduate School of Business in Tokyo; Takuya Hirai, a member of Liberal Democratic Party and the author of last year's law on the legalization of crypto exchanges; Yuzo Kano, CEO of the bitFlyer Inc. cryptocurrency exchange, employees of Japanese banks Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc., etc.

by JustForex, 2018.04.09

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Stop and Limit Orders in Forex
There are many gainful opportunities for traders in the forex market, but no one is immune to losses. That’s the reason why traders should employ an efficient trading strategy where both stop and limit orders go hand in hand with other essential aspects of the strategy.
Read more
Top 10 Successful Forex Traders in Indonesia
Due to the growing popularity of forex trading, it’s impossible to stay on the sidelines. What does it take to become one of those confident traders? Is forex trading for you? Find out more about the nature of this industry and have a look at the list of top Indonesian forex traders in 2021.
Read more
Guide to Forex Trading in Indonesia
What is forex trading? It’s freedom – due to the round-the-clock market operation in different parts of the world, hundreds of thousands of traders choose what’s best for them: time frame, asset, strategy, objectives, amount of a deposit, etc. There might be a lot of questions in the beginning of your trading journey, and this article aims to emphasize the essential aspects of this profession.
Read more