Japan’s Financial Service Agency, the Asian nations financial watchdog, is considering the possibility of drawing up a framework from which companies looking to raise funds through an initial coin offering can operate, according to a local news source.
In response to growing crypto and ICO activity in the territory, the Financial Services Agency is looking to revise certain laws in an effort to effectively regulate ICO’s as the nation currently has no clear regulations regarding ICO’s. The Bitcoin payment law, passed last April, doesn’t sufficiently define the legal status of certain ICO projects.
The FSA is already monitoring ICO projects targeting Japanese investors that the agency has deemed suspicious. The FSA has issued multiple warnings to a Macau-based cryptocurrency firm that solicits investment for Japanese citizens and published a formal statement on its website to order to stop the firm operating in the country, in an effort to protect citizens from falling victim to fraud.
The move towards ICO regulation follows on the heels of an October 2017 statement made by the FSA, in which the agency put emphasis on a number of ‘risk factors’ presented by token sale activities with a fundraising purpose.
Other nations, like the United States, have recently moved to more clearly define ICO tokens, in an effort to protect investors and to bring clarity to the industry. Just four days ago, Austria announced plans to draw up ICO and cryptocurrency regulations, using existing rules for the trading of gold and derivatives as a model. While on February 22nd Germany’s financial markets regulator issued new guidance on how it will classify ICO tokens, including those it will consider securities.
This is indicative of the fact that governments around the world recognise that there isn’t much they can do to stop the inevitable growth of cryptocurrenciess. Regulators now are scrambling to set up rules to stem the free-for-all currently raging in the cryptoverse and bring some semblance of order to the chaos, this is simply another step towards mainstream adoption.