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.
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