Japan authorities presented new rules for ICO regulation to the crypto community. As the source states, a new package of legislative measures will be focused on the investors’ protection from the potential fraud.
According to newly approved rules, the members of the crypto business, which want to launch an ICO, must be registered in the Financial Services Agency (FSA).
All proposals, received by specialists of the agency for the analysis, will be reviewed in accordance with current laws. This procedure will come in force in January 2019.
The main purpose is the prevention of the potential scam, which is the main tool to deceive the investors. Every ICO-project will be carefully considered in the context of contributors’ protection. According to the study by Statis Group, almost 80% of ICOs in 2017 were scams.
The main regulatory body of Japan held many meetings and consultations with crypto community members before the final release. During the last meeting, which was held in July this year, the following classification of ICOs was presented:
- Virtual currencies without issuer.
- Virtual currencies with an issuer.
- Tokens with an issuer, which are obliged to distribute revenues to investors.
According to the new document, the first and second categories are subject to the basic rules of “Financial Instruments and Exchanges Act”. Whereas a third category is a subject to investment regulations of the same act.
In October, the FSA decision was announced, in which stablecoins do not fall under the definition of cryptocurrency in accordance with current legislation.