The Japan Cryptocurrency Business Association (JCBA) — a local group representing the new industry in the country — published a list of recommendations for regulating ICOs as well as some other segments of the crypto industry.
The recommendations which the release claims is in line with previous studies by Japan’s Financial Services Agency (FSA) was compiled following research by a special ICO Review Group formed by the JCBA last year.
Precisely, the document focuses on three significant areas where authorities could implement new regulations to encourage the growth of the crypto industry namely:
Making provisions for domestic exchanges to increase the number of cryptocurrencies it can offer to users
Defining security tokens and regulating them under the Financial Instruments and Exchange Act used to regulate other traditional assets. While ICOs often violate existing regulations, security tokens are more compliant.
Creating regulations for utility tokens since they unlike security tokens, serve as a means of settlement.
The group will hope that their recommendations meet favor from Japan’s FSA while also trying to enforce some of the standards among crypto startups that are its members.
As Stmarket.co reported in December, the JCBA is not the only crypto industry group in Japan seeking to provide clarity to the space while the relevant authorities work out more viable regulations.
The Japan Virtual Currency Exchanges Association (JVCEA) received official recognition from Japan’s FSA to exist as a self-regulatory organization and provide guidelines that will become binding on crypto exchange operators who are its members.
Hopefully, the various regulations will be just enough to govern a region which contributes significantly to the success of the global cryptocurrency market.
A special committee set up in 2017 for ICO regulation in Israel also released its recommendations for the industry earlier this week.
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