Japan May Legalize ICOs In the Near Future ๐จ This article is 6 years old...
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Japan May Legalize ICOs In the Near Future
2 min read
Updated: Mar. 24, 2020 at 7:01 am UTC
Photo by JJ Ying on Unsplash
It is no secret that Japan commands one of the largest crypto user-bases in the world today. Thus in an attempt to introduce more stability and transparency within their digital currency sector, a government-funded research group has set forth new regulatory guidelines for future ICOs.
Simply referred to as the ICO Business Research Group, the regulatory body was formed last November and consists of established industry faces such as Takuya Hirai, Yuzo Kano as well as other big names from various local financial institutions, private businesses, and venture companies.
In a collective report released by the group on April 5, they wrote:
โICO is still in its infancy and has no industry practices yet. Therefore, appropriate rules must be set to enable ICOs to obtain public trust and to expand as a sound and reliable financing method.โ
As per the proposed guidelines, some notable points of interest include:
- ICO operators will henceforth be required to perform KYC verification checks on all potential investors.
- Companies need to provide participants with detailed progress reports in relation to their development activities. The predefined roadmap will act as a barometer for this progress.
- Future ICOs should be formulated in a manner which allows for full financial accountability and minimizes the possibility of any money laundering activities.
For now, the aforementioned rules have not been set in stone and Japanโs FSA is currently in the process of scrutinizing these regulations.
However, once adopted, this new framework will not only further cement Japanโs position as a crypto powerhouse but will also pave the way for other nations to follow suit and incorporate such laws into their existing legal systems.
Final Thoughts
Even though the crypto market seems to be going through an enormous bear run at the moment, such changes reflect the driving power of the ongoing crypto movement and how governments all across the globe are finally giving this revolution the credence it truly deserves.
