The future of crypto and ICO regulation: Japan drafts a new report
Findings from a research group related to digital currency aided the Financial Services Agency (FSA) in drafting guidelines for cryptocurrency and Initial Coin Offerings (ICOs) in Japan.
Recently, Japan published its plan to regulate the ICOs and cryptocurrency in a draft report. In the report there’s a list of recommendations that cite previous findings and research. According to CCN, these recommendations acknowledge the changing nature of technology and the dire need to regulate crypto.
The report addressed issues such as deemed dealers, prevention of money laundering, and establishing guidelines for crypto and ICO exchanges. The report prohibits dealer companies and cryptocurrency exchanges to operate or to promote their services without having the proper registration. Money laundering is also expected to be eliminated with the introduction of guidelines for crypto exchanges.
The report also cites that certain ICOs might be subject to the regulations of the Financial Instrument and Exchange Act, depending on how the tokens are structured. According to local media reports, there’s little to no opposition for the draft legislation, and most likely it’s on the path to be fully adopted early next year.