Japanese Securities Token Offering Association Lays New Regulatory Guidelines
On April 20, 2020, the Japan Security Token Offering Association (JSTOA) released self-regulatory guidelines to help the citizens and the financial regulators differentiate between customer assets and electronic record transfer rights. Notably, the briefing by JSTOA comes shortly after the revisions made to the country’s Financial Instruments and Exchange Act (FIEA).
Japan Gives Crypto Businesses Space to Govern Themselves
In a recent development in the Japanese cryptocurrency space, the JSTOA laid out new rules for various facets of the industry, including customer assets and electronic record transfer rights.
The association released the new guidelines in accordance with the recent changes made to Japan’s FIEA. For the uninitiated, the Japanese House of Representatives recently made several revisions to the FIEA which are slated to take effect May 1, 2020, onwards.
Notably, the JSTOA released the new reference guidelines pertaining to customer assets and electronic record transfer rights at a meeting comprising association employees and the Board of Directors.
Per sources close to the matter, from now onwards, the JSTOA will periodically – once a month, to be precise – check the management of separately held customer assets with state-certified public accountants and audits.
In addition to the aforementioned vigilant measure, the association has also decided to establish a clearer definition of selling crypto-assets to the typically unsuspecting elderly populace which often falls prey to fraud and Ponzi schemes in the cryptocurrency ecosystem.
Japan Leading the Crypto and Blockchain Industry by Example
For the uninitiated, the JSTOA came into existence in October last year to foster the development of the Japanese security token offering (STO) space. Among other functions, the JSTOA is responsible to ensure the crypto businesses in the island nation duly comply with laws and regulations.
The association enjoys the backing of major financial institutions and organizations including the likes of Nomura Securities, Rakuten Securities, SBI Securities, and Monex, among others.
On a similar note, BTCManager reported on March 11, 2020, how Japan’s apex securities regulator, the Financial Services Agency (FSA) had announced the launch of the Blockchain Governance Initiative Network (BGIN) as a means of gathering stakeholders so they can broaden their understanding of the technology and implement it in a sustainable manner.