The Financial Services Agency of Japan (FSA) is planning to introduce new rules for the regulation of ICOs to protect cryptocurrency investors. It is reported by the Cointelegraph, citing the local news publication Jiji Press.
The publication quotes "informed" sources, according to which all the organizers of the ICO will have to be registered with the FSA.
In addition, the agency plans to introduce new bills, which will revise the rules for exchanges, payment services and other suppliers of financial instruments. It is expected that this will occur in January, when the parliamentary session starts.
It is argued that the regulator is taking this step in the light of several potentially fraudulent projects conducted outside of Japan. In particular, in order to better protect private investors, the agency intends to limit their investments in ICO.
In October it was reported that the FSA plans to set a limit on the size of leverage during cryptocurrency trading in order to reduce risks and market speculation. This measure was also recommended by the of Japan Virtual Currency Exchanges of Association (JVCEA), which had previously received the status of a self-regulating organization.
Earlier this week, the US Securities and Exchange Commission (SEC) fined the famous American boxer Floyd Mayweather and music producer DJ Khaled for promoting ICO of Centra Tech in social networks. In particular, the regulator found that celebrities hid the fact that the organizers paid them for advertising tokens.