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Laxman Pai, Opalesque Asia: Japan's financial regulator Financial Services Agency (FSA) is ready to introduce new regulations for Initial Currency Offers (ICO) in a bid to protect investors against fraud.
According to a report by the Japanese news agency Jiji Press, the organizations and companies wishing to execute ICOs will need to register with Japan's FSA.
In a similar way, the securities tokens are required to register with the American SEC in the United States. But the difference is that the FSA does not operate in precisely the same manner as the SEC, which has a wide purview emboldened by several post-Depression-era pieces of legislation. The FSA must submit bills to the Japanese parliament which modify actual Japanese financial law in order to enforce the regulations.
While there are many pros and cons of investing in ICOs, having a strong regulatory backdrop helps in largely eliminating the cons.
Jiji reported that the regulations come "in view of a number of possibly fraudulent ICO cases abroad" and they would help "limit individuals' investment in ICOs for better protecting them."
According to the news report, the agency is mulling over the idea of introducing bill submissions in the upcoming Parliamentary session next month. The bills will relate to revision of financial instruments, as well as exchanges and payment services legislations.
The proposed laws and regulations would not only impact ICOs wanting to operate in Japan, but woul...................... To view our full article Click here
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