Japan to Publish Report of New Crypto Regulations

The report contains measures in areas that are not currently enlighten in existing laws
17 December 2018   7815

The Financial Services Agency of Japan (FSA) published the long-awaited preliminary report on the new regulatory framework for cryptocurrencies and initial coin offerings (ICO), Bitcoin.com reported. Discussion of the document was included in the agenda of the eleventh meeting of the research department of the department and contains recommendations for the previous ten meetings. According to local media, the proposed measures did not arouse significant objections, therefore, it is expected that based on them, the FSA will draft a new bill.

One of the main points of the report was the prevention of hacking and working with them - this year the country's cryptocurrency exchanges in such incidents appeared twice, and both times with large sums: Coincheck in January and Zaif in September. The FSA will require cryptocurrency exchanges to reinforce customer property management and maintenance systems and have reserves sufficient to cover losses in the event of a break-in. The document also proposed measures to prevent the bankruptcy of cryptocurrency exchanges. In part, this has already been implemented in the current licensing system.

The regulator notes the fact of the rapid development of the financial and technological industry and recognizes the importance of its self-regulation. In October, the Japan Association of Virtual Currency Exchanges was accredited by the FSA, with which it received the right to set rules for industry participants.

The FSA considers it permissible to deny registration to operators who do not want to join an accredited association and follow its rules, or will not have their own systems to comply with these rules. Given the positive experience of licensing cryptocurrency exchanges in Japan, they are probably among the first to be able to make self-regulation work in this industry.

Among other things, the document discusses restrictions on listing of private cryptocurrencies, derivatives trading and margin trading - already familiar to us proposals for earlier discussions.

According to the FSA, ICO "can be subject to securities regulation". “We are implementing an administrative measures,” the agency reports, whatever that implies. Depending on their structure, tokens can be regulated in accordance with the law on financial instruments and stock exchanges or the law on financial settlements. The possibility of vesting third-party organizations with the authority to study the business of issuers of tokens and their financial position is also being considered.

A separate place in the report is reserved for crypto-custodian business, which is currently not regulated by Japanese laws. The FSA proposes to create a registration system, implement internal control systems, divide the management of client funds and company funds, oblige services to prepare hacking response procedures and have reserves for paying compensation to users - in general, everything that is already applied to cryptocurrency exchanges licensing system.

Algorand to Raise $60M in 4 Hour Tokensale

The project was founded by a MIT professor and a Turing Award winner Silvio Micali and is designed to solve the problems of scalability and consensus in the DLT
20 June 2019   2406

The blockchain-project Algorand, aimed at creating an “borderless economy ”, announced the successful completion of the  ALGO tokensale, during which it raised over $ 60 million, CoinDesk reports.

The campaign was held on the CoinList platform and was conducted in the format of the so-called “Dutch auction”, in which the highest price is first announced, after which it gradually decreases.

Simultaneously with the completion of the tokensale, it was announced the launch of the main network of the Algorand. The platform processes 1000 transactions per second with a delay time of less than 5 seconds, which, as noted, puts it on par with such major payment networks as Visa and Mastercard.

In his work entitled The Monetary Experiment: Algorand A Thesis For Algo Currency Markets, the head of Arrington XRP Capital, Michael Arrington writes that Algorand is a project where macroeconomics meets cryptocurrencies. He also notes that Algorand, as a blockchain-resistant Proc-of-Stake algorithm, is distinguished by a combination of advanced cryptography and a smart economic model.

The Algorand project was founded by a professor at the Massachusetts Institute of Technology and a Turing Award winner Silvio Micali. The main task of Algorand is to solve the problems of scalability and consensus in the blockchain.

As noted, the exact number of buyers who participated in the auction remains unknown, but because of high demand, the campaign lasted less than four hours. In total, 25 million ALGO tokens were distributed with a starting price of $ 10 and a closing price of $ 2.40.

Representatives of the project also stated that since tokens are distributed to customers' wallets and are not available on stock exchanges, there is no need to talk about any value of Algorand market capitalization.

Algos are being dispersed to wallet right now (for successful bids).  Therefore – there are non on exchanges. [Therefore, no market capitalization is available for Algorand, though some have speculated it sits around $6 billion.] Which is still a top 10.
 

Algorand Team

Earlier, the project announced plans to auction 600 million ALGO tokens per year, and in the first five years it is planned to release 10 billion tokens.

Also note that over the last year, Algorand raised $ 66 million in venture capital from investors such as Union Square Ventures and Pillar Venture Capital.