Is Japan Legalizing ICO’s? Japan has now proposed guidelines with the view of legalizing ICOs in the country.
The proposal comes from the ICO Business Research Group, a Japanese government-backed group that’s part of the Center for Rule-making Strategies (CRS). The group released a report recently that offers “rules needed to establish ICO as a sustainable financing method.”
The report states:
“ICO is still in its infancy and has no industry practices yet. Appropriate rules must be set to enable ICO to obtain public trust and to expand as a sound and reliable financing method. Based on a shared awareness of this necessity, financial institutions, non-financial companies, and venture companies have co-founded the ICO Business Research Group.”
The set guidelines are as follows:
“ICOs should be designed to be acceptable to existing shareholders and debt holders.”
“ICOs should not become a loophole in existing financing methods as equity finance.”
The ICO Business Research Group proposed five trading principles:
- “Token sellers should confirm the identity (Know Your Customer: KYC) and suitability of customers.”
- “Administrative companies that support the issuance of tokens should confirm the KYCs of issuers.”
- “Cryptocurrency exchanges should define and adopt an industry-wide minimum standard on token listing.”
- “After tokens are listed, unfair trade practices of such tokens such as insider trading should be restricted.”
- “Parties related to the trading of tokens such as issuers, administrative companies, and token exchanges should make efforts to ensure cyber security.”
What do you think? Is Japan Legalizing ICO’s a positive step? Do you agree that there need to be more regulations in the ICO space? Or do you think implementing regulations takes away from the point of cryptocurrency? Let us know in the comments below.
Featured image: geralt