Japan to Tighten ICO Regulation

All the organizers of the ICO will have to be registered with the local watchdog
03 December 2018   193

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.

Users Suspected RusGas of Scam

Reddit users have already accused RusGas of exit scam, since its behavior is much like  recent scam project Oyster Protocol
07 December 2018   113

The RusGas cryptocurrency project (RGS) demonstrates disturbing signs and releases new tokens in excess of the pre-set emission limit, Cryptovest reports. With an aggregate capitalization of $ 117, RGS trading volume for the last few days is $ 35,000. Events unfold against the backdrop of promises made by the project organizers about the upcoming restart.

Most of the RGS trade is focused on the Crex24 exchange, which has a daily  of $ 700,000. RusGas had a daily volume of several million dollars in its best days, which already then caused questions about the authenticity of this value.

According to CoinMarketCap, RGS emissions are limited to 10 billion tokens, but Etherscan indicates that currently 298 addresses contain 860 billion RGS. The rapid growth of emissions was recorded in recent days and hours. The largest wallet contains 99% of all tokens, which is probably the crex24 wallet. The developers themselves explain these movements to the next restart.

Reddit users have already accused RusGas of exit scam, since its behavior is much like  recent scam project Oyster Protocol(PRL), when the additional issue feature was used in a smart contract.

The likelihood of such an outcome is a characteristic feature of projects based on the Ethereum protocol, which allows additional emission of tokens through a smart contract at the discretion of its owner, not to mention other vulnerabilities that cost investors a lot of money.

RusGas is based on the idea of ​​using tokens and blockchains to optimize the Russian gas industry. Despite the dubiousness of the project’s mission, the data on the network indicates that in April of this year he managed to raise $ 2.2 million for ICO.