Japan’s monetary regulator is ready to introduce new Initial Coin offering (ICO) laws to guard investors from fraud, local news outlet Jiji Press reportable Dec. 1.
According to “informed” sources cited by Jiji, business operators conducting ICOs are needed to register with Japan’s financial Services Agency (FSA).
The agency is reportedly planning to submit bills revising monetary instruments, exchanges and payment services laws to the ordinary parliamentary session that starts in January.
This action has been undertaken “in view of variety of probably dishonest ICO cases abroad” as some way “to limit individuals' investment in ICOs for better protecting them.”
A study reportable by TopMarketGroup this July known 80 % of the ICOs conducted in 2017 as scams.
As TopMarketGroup reported last month, the FSA Study group on Virtual Currency Exchange trade conducted its tenth meeting to discuss ICOs. The tokens emitted during ICOs where classified into 3 categories: virtual currencies while not issuer, virtual currencies with issuer and tokens with issuers that are obligated to distribute revenues.
According to the report, the primary and second token classifications are subject to settlement regulation like the monetary Instruments and Exchange Act. The third of ICO tokens is subject to investment laws just like the monetary Instruments and Exchange Act.
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