In a move designed to foster the adoption of security token offerings (STOs) as a fundraising mechanism in Japan, six brokerage firms — Monex, Nomura Securities, Rakuten Securities, SBI Securities, Daiwa Securities, and Kabu.com Securities — came together in the country’s capital, Tokyo to form an Association.
Monex, one of the six-member firms of the newly formed Japan Security Token Offering Association announced the development on Tuesday, noting that the role of the new organization is to exist as a self-regulatory group for STOs.
As part of that assignment, the Japan STO Association would strive to provide investor protection by preventing illegal activities in the space, especially unfair trading and money laundering crimes often associated with crypto-related offerings.
Commenting on one of the reasons why the brokerage firms decided to launch an STO Association, Monex wrote in the release that STOs are gaining traction globally and Japan is not about to be left behind.
“Japan is also following the trend and is ensuring that sufficient conditions are in place for STOs to become widely used,” a section of the release stated.
Meanwhile, the newly formed Association hopes to consolidate expertise on securities businesses from among the member securities companies and other entities so that the STO business opportunities can be explored and developed in Japan.
To this end, the Association reportedly plans to obtain certification as an Authorized Financial Instruments Firms Association based on the Financial Instruments and Exchange Act and to fully leverage its capabilities as a self-regulatory organization.
In a related development, another self-regulatory crypto association was also formed earlier this week, albeit not in Japan. We reported on Monday that Coinbase and other crypto-related firms launched a new Crypto Rating Council designed to classify which cryptocurrencies qualify as securities under U.S securities law.