Financial services giant Monex Group announced the establishment of a Japanese Security Token Offering Association alongside five other major securities companies in the country.
Major Japanese brokerage firms come together to promote STOs
Japan could soon see more useful regulations surrounding security tokens as some of the biggest brokerage companies in the country have joined forces to promote the new asset class. Registered as a General Incorporated Association, the Japan STO Association will work on developing regulations regarding security tokens and security token offerings (STOs) in the country.
Monex Group, which owns cryptocurrency exchange Coincheck, will be a member of the Association alongside SBI Securities, Rakuten Securities, Nomura Securities, Daiwa Securities, and kabu.com Securities.
Laying the path for regulated STOs in Japan
The six securities giants aim to consolidate their expertise that can be used to explore and develop STO business opportunities in Japan.
“The Japan STO Association is committed to the development of STOs in Japan which it believes will contribute to a more active capital market and development of the real economy,” Monex Group said in the press release.
One of the first things the association will focus on is regulatory compliance. Abiding by the laws of regulations regarding financial markets in Japan will not only protect investors but also reduce illegal activities in the crypto space.
The association plans on obtaining certification as an Authorized Financial Instruments Firms Association, a category that puts it under the Financial Instruments and Exchanges Act. It will enable the association to “fully leverage its capabilities as a self-regulatory organization,” the company said in the release.
While monumental for the security token market in Japan, this isn’t the first time Monex has dipped its fingers into the crypto space. The financial services giant bought hacked Japanese crypto exchange Coincheck back in 2018 and had plans to launch its own crypto business even earlier than that.Posted In: Japan, Regulation