Japan has developed guidelines for the regulation of ICO, to the report of the study group supported by the government.
The paper provided basic requirements for identification of investors, prevention of money laundering, the monitoring of the implementation of projects, as well as the protection of shareholders and debenture holders. Proposals will be reviewed by the financial services Agency of Japan (FSA) at the end of April and in the end can be legislated.
In the report the token-ICO do not appear as securities and therefore do not fall under those strict securities laws, which insists the Commission on securities and exchange Commission (SEC).
«ICO is an innovative technology, so if we can implement good policies, it has huge potential to become the new way of attracting funding,» – said the expert of the research Institute Mizuho Kenji of Harashima.
The chief Advisor of the research group is member of the ruling liberal democratic party and co-author of last year’s law on the legalization of cryptocurrency exchanges in Japan Takuya Hirai (Hirai Takuya). The group also included representatives of financial groups Mitsubishi UFJ, Mizuho and Mitsui and the head of the country’s largest stock exchange bitFlyer, Yuzo Kano (Yuzo Kano).
The report States that issuers ICO should clearly state, as raised funds, profits and assets will be distributed among the owners of the tokens, shares, assets and liabilities. The regulator must actively monitor project plans and document changes.
«Cryptocurrency exchanges must identify and adopt industry standards to enable ICO and insider trading should be prohibited,» say the researchers.
However, they call the proposed guidelines the minimum, stating that they should be adopted in the near future.
«To let ICO be safely used by a wide range of issuers and investors and to be successfully accepted in a society may require more detailed rules,» the report says.