Japan to Unveil ICO Regulation and Legalization Plan

The Financial Services Agency of Japan will consider the proposal, and in a few years it can acquire the status of law
05 April 2018   1478

The Center for Normative Strategies at Tama University presented a list of regulations for the regulation and full legalization of the ICO in Japan. This is reported by Bloomberg.

The list of requirements prepared by the government-sponsored group includes provisions on money laundering combat, identifying investors, tracking project progress, and protecting investor interests. The Financial Services Agency of Japan will consider the proposal, and in a few years it can acquire the status of law.

The document describes the principles of granting guarantees, for example, the principles of tracking progress according to white paper and determining the impact on potential investors.

In addition, the document establishes certain principles of trading, customer identification, minimum requirements for listing on exchanges and a ban on insider trading.

In the document, tokens distributed through ICO are directly referred to as securities. A similar position is held by the US Securities and Exchange Commission. 

ICOs are groundbreaking technology, so if we can implement good principles and rules, they have the potential to become a new way to raise funding.
 

Kenji Harashima

Researcher, Mizuho Research Institute.

The document was developed by Takuya Hirai, a member of the ruling Liberal Democratic Party, who was directly involved in the creation of a licensing system for exchanges last year, Yuzo Kano, head of Japan's largest exchange bitFlyer, as well as experts from the country's largest banks: Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   346

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.